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Jan 18
Income, in the context of taxation, refers to the money or earnings that an individual or entity receives within a specific period. It is a crucial factor in determining the tax liability of an individual or business. The concept of income for tax purposes is broader than just the salary or wages earned by an individual. It includes various sources of income, such as:
1. Employment Income: This includes salaries, wages, bonuses, tips, commissions, and any other compensation received by an individual for their services as an employee.
2. Self-Employment Income: This refers to the earnings of individuals who work for themselves or own a business. It includes profits from a sole proprietorship, partnership, or income from freelancing or consulting.
3. Investment Income: This includes income generated from investments, such as interest earned on savings accounts, dividends from stocks, capital gains from the sale of assets, rental income from properties, and royalties from intellectual property.
4. Retirement Income: This includes pensions, annuities, and distributions from retirement accounts like 401(k) or Individual Retirement Accounts (IRAs).
5. Social Security Benefits: These are payments received by individuals who have contributed to the Social Security system during their working years.
6. Unemployment Compensation: This refers to the benefits received by individuals who are unemployed and eligible for government assistance.
7. Other Sources: Income can also come from various other sources, such as alimony, child support, lottery winnings, gambling winnings, and any other form of monetary gain.
It is important to note that not all types of income are taxed at the same rate. Tax laws differ across jurisdictions, and each type of income may be subject to different tax rates, deductions, exemptions, or credits. Additionally, certain types of income may be excluded or taxed differently based on specific circumstances or provisions in the tax code.
1. Employment Income: This includes salaries, wages, bonuses, tips, commissions, and any other compensation received by an individual for their services as an employee.
2. Self-Employment Income: This refers to the earnings of individuals who work for themselves or own a business. It includes profits from a sole proprietorship, partnership, or income from freelancing or consulting.
3. Investment Income: This includes income generated from investments, such as interest earned on savings accounts, dividends from stocks, capital gains from the sale of assets, rental income from properties, and royalties from intellectual property.
4. Retirement Income: This includes pensions, annuities, and distributions from retirement accounts like 401(k) or Individual Retirement Accounts (IRAs).
5. Social Security Benefits: These are payments received by individuals who have contributed to the Social Security system during their working years.
6. Unemployment Compensation: This refers to the benefits received by individuals who are unemployed and eligible for government assistance.
7. Other Sources: Income can also come from various other sources, such as alimony, child support, lottery winnings, gambling winnings, and any other form of monetary gain.
It is important to note that not all types of income are taxed at the same rate. Tax laws differ across jurisdictions, and each type of income may be subject to different tax rates, deductions, exemptions, or credits. Additionally, certain types of income may be excluded or taxed differently based on specific circumstances or provisions in the tax code.
1
Lipi Begum
Jan 19
Hi
1
ashenafi melis
5 days ago
If my income before tax is birr 3,06424how much income after tax
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