Gross income essentially includes any and all income subject to federal taxes. Here are some common forms of gross income Except:
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A. B. C. D.D
The correct answer is D. Alimony paid.
Gross income is the total income earned by an individual before any deductions are made for taxes or other expenses. It includes all types of income, including wages and salaries, bonuses, commissions, tips, interest, dividends, rental income, and other forms of income.
Wages and salaries are the most common forms of income for most people. These are payments received in exchange for work done, and they are subject to federal taxes.
Bonuses, commissions, and tips are also forms of income that are subject to federal taxes. Bonuses are typically paid as an incentive for good performance or as a reward for achieving specific goals. Commissions are a percentage of sales that an individual earns for selling products or services. Tips are payments received from customers in service industries such as restaurants, hair salons, and hotels.
Interest and dividends received are also considered gross income. Interest is earned on savings accounts, CDs, and other types of investments, while dividends are payments made to shareholders of stocks and mutual funds.
Alimony paid, on the other hand, is not considered gross income. Alimony is a payment made to a former spouse as part of a divorce settlement or separation agreement. The person paying alimony can deduct the payments from their taxable income, while the person receiving alimony must report it as income and pay taxes on it.
In summary, while all the options (A) wages and salaries, (B) bonuses, commissions, and tips, (C) interest and dividends received are forms of gross income subject to federal taxes, the correct answer is (D) alimony paid, which is not considered gross income.