ordinary income

American  

noun

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

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Example Sentences

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

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

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

The nondeductible portion is tax-free, but the rest is taxable as ordinary income.

From MarketWatch • Apr. 20, 2026

This form of special debt-charge super-tax would enable the ordinary income tax to be reduced considerably at once.

From War-Time Financial Problems by Withers, Hartley