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ordinary income

American  

noun

  1. taxable income, as salary and wages, other than capital gains.


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Those stock sales will generate capital gains, which California treats as ordinary income and taxes at rates as high as 13.3%.

From MarketWatch • May 19, 2026

The accounts eventually become converted to conventional individual retirement accounts, or IRAs, and distributions will be taxed as ordinary income, though family contributions will be returned tax-free.

From Los Angeles Times • May 12, 2026

Alternatively, withdrawing from retirement accounts would generally be taxed as ordinary income, potentially at higher marginal rates depending on your tax bracket.

From MarketWatch • Apr. 15, 2026

These forced withdrawals are payback for years of valuable tax deferral and are taxed at ordinary income rates.

From The Wall Street Journal • Apr. 3, 2026

He has found, however, that his success in this direction has diverted about £10,000 from the ordinary income of the Salvation Army.

From Salvation Syrup; Or, Light On Darkest England by Foote, G. W. (George William)

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