ordinary income

American  

noun

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

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Example Sentences

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ordinary income

Withdrawals are taxed as ordinary income, but they generally aren’t subject to the 3.8% net investment income tax, which mostly applies to other investment income.

From MarketWatch ● Jun. 18, 2026

Withdrawals will be taxed at ordinary income rates.

From Barron's ● May 28, 2026

With a traditional IRA, funds tapped before age 59 ½ are assessed a 10% penalty and subject to ordinary income taxes.

From Barron's ● May 28, 2026

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

There are few prizes, and neither in school nor in college will a teacher’s ordinary income carry him much above want.

From The Teacher Essays and Addresses on Education by Palmer, Alice Freeman