What’s Included in Your Gross Income

Gross income (also known as Total Income) is the number that’s going to be on Line 22 of your 1040 tax return.

I suggest looking at a 1040 while I explain line by line what your gross income will include.  The items in green apply to most of us millennials.

  • Line 7) wages, salaries, tips, etc. (your employer(s) will send you a W-2 with all this information)
  • Line 8) taxable interest (this includes stuff like the .01% interest that you get from your savings account!)
  • Line 9) dividends (won’t really apply unless you have investments)
  • Line 10) taxable refunds, credits, or offsets of state and local income taxes
  • Line 11) alimony received (won’t really apply unless you’re divorced)
  • Line 12) Schedule C net income or loss (won’t really apply unless you own your own business)
  • Line 13) capital gain or loss (won’t really apply unless you have investments)
  • Line 15 & 16) IRA distributions and pensions & annuities (won’t really apply unless you’re retired)
  • Line 17) Schedule E income (won’t really apply unless you have income from a rental property, partnership, trust, etc.)
  • Line 18) farm income or loss (won’t really apply unless you own an income producing farm)
  • Line 19) unemployment compensation (won’t really apply unless you receive unemployment income from the government)
  • Line 20) social security benefits (won’t really apply unless you’re retired or disabled and receiving income from our social security system)
  • Line 21) other income (this is for all the other ways you might be getting income: winning the lotto, awards, 1099, gambling, jury duty, etc.)

Line 22 is all these items added together to make up your Total Income.

Next time I will cover what’s NOT included in your gross income.  Also known as what ways can you receive money without having to pay taxes on it.

3 thoughts on “What’s Included in Your Gross Income

  1. Pingback: What’s NOT Included in Your Gross Income | Millennial Finance

  2. Pingback: Adjusted Gross Income | Millennial Finance

  3. Pingback: Taxable Income & Tax Rate Schedule | Millennial Finance

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