ordinary income

American  

noun

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

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Example Sentences

Meanwhile, hardship withdrawals are taxed as ordinary income, and the employee pays a 10% penalty if they’re younger than age 59½.

From MarketWatch • 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

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

You will owe ordinary income tax on the amount taken out and, if you are under age 59½, a 10% early withdrawal penalty.

From MarketWatch • Apr. 23, 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