Definition, Meaning & Synonyms
ordinary-income
Noun
/ˌɔːrdəˈneri ˈɪn.kʌm/
Definition
Income earned through regular business activities or employment that is subject to standard taxation.
Examples
- The salary that an employee receives from their job is considered ordinary income.
- Interest earned on a savings account is classified as ordinary income.
Meaning
Ordinary income typically includes wages, salaries, bonuses, interest, and rental income, as opposed to capital gains or other forms of income.
Synonyms
- regular income
- earned income
- wage income
