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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.

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

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

Throughout the following year Claes was grave and preoccupied; and yet, though he made a few inexpensive experiments for which his ordinary income sufficed, he seemed to neglect his laboratory.

From The Alkahest by Wormeley, Katharine Prescott

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