ordinary income

American  

noun

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

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Example Sentences

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

Interest earned on savings, bonds and CDs is generally taxed at ordinary income rates, so consult a tax professional to make sure how you can avoid sliding into a higher tax bracket.

From MarketWatch • Mar. 26, 2026

But they are more valuable as offsets to short-term gains because short-term gains are taxed at the same rates as ordinary income as high as 37%.

From Barron's • Mar. 21, 2026

In 1882 a special fund was started for the purpose of giving aid to women left with children, and about £380 was subscribed thereto, while the ordinary income was only £680.

From Showell's Dictionary of Birmingham A History and Guide Arranged Alphabetically by Harman, Thomas T.