ordinary income

American  

noun

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

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Example Sentences

You know you’ll pay federal income tax at ordinary income rates.

From MarketWatch • Jun. 3, 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

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

Short-term gains are taxed at ordinary income rates and impact your MAGI.

From MarketWatch • Apr. 21, 2026

The debt was a large one; and the ordinary income of the Crown, unaided by Parliamentary supplies, was inadequate to meet its ordinary expenditure.

From History of the English People, Volume V Puritan England, 1603-1660 by Green, John Richard