ordinary income

American  

noun

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

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Example Sentences

See Examples For:

ordinary income

However, these payouts are taxable as ordinary income, so using the account for tax-free health reimbursements is better if possible.

From The Wall Street Journal ● Oct. 16, 2026

Your mother would not be restricted by the terms of the 529 plan, which comes with a 10% penalty and ordinary income tax if the funds are withdrawn for something other than educational expenses.

From MarketWatch ● Sep. 10, 2026

If your shares cost most of what they’re worth today, you’re paying ordinary income tax now on nearly the whole position in exchange for a small capital-gains break later.

From MarketWatch ● Sep. 10, 2026

For those who are unaware, ordinary income is taxed on a graduated schedule from 10% up to 37%, while long-term capital gains top out at 15% for most people and 20% at the highest incomes.

From MarketWatch ● Sep. 3, 2026

He does not state—probably he does not know, and perhaps he does, not care—how much he has diverted from the ordinary income of other bodies.

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

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