Concept
Gross Income
Gross income includes ALL income from whatever source derived: wages, salaries, tips, interest, dividends, business income, capital gains, rental income, alimony (pre-2019 agreements), and retirement distributions.
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REGLesson 2 of 5
Gross Income: Inclusions & Exclusions
Concept
Common Exclusions
Excluded from gross income: gifts and inheritances, municipal bond interest, life insurance proceeds, qualified scholarships, employer-provided health insurance, and Roth IRA qualified distributions.
Key Point
Constructive Receipt
Under the constructive receipt doctrine, income is taxable when it is made available to you without restriction — not necessarily when you physically receive it. Example: a December paycheck you could have picked up but chose to wait until January.
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