What counts as gross income
Most income is taxable unless federal law specifically excludes it. The tax forms you may receive depend on how you earned the income. Remember, all income is still reportable even if you do not receive one of these forms. Here are some examples of income and how they are reported to you or the IRS.
| Income type | Where it may be reported |
|---|---|
| Wages, salary, tips | Form W-2 |
| Self-employment or business income | Cash, Form 1099-NEC, Form 1099-K, and Form 1099-Misc. |
| Interest | Form 1099-INT |
| Dividends | Form 1099-DIV |
| Rental and/or royalty income | Form 1099-Misc, Form 1099-C, Cash |
| Capital gains | Form 1099-B, Form 1099-DA |
| Retirement distributions | Form 1099-R |
| Gambling winnings | Form W-2G |
| Loan forgiveness | Form 1099-C |
| Other miscellaneous income | Form 1099-Misc |
Source: Internal Revenue Service
What’s excluded from gross income
Some payments are generally excluded from federal gross income, including:
- Gifts and inheritances you receive
- Most life insurance death benefits
- Child support payments
- Workers’ compensation benefits
- Qualified scholarships used for tuition and required course expenses
Unrecognized gains (like unsold stock or assets) are not income. Loans (such as personal loans, auto loans, or credit cards) also are not income, but loan forgiveness is.
Note: Exceptions and reporting requirements may apply, so an excluded payment may still need to appear elsewhere on your return, or on your state return.
Gross income compared with other types of income
Gross income, take-home pay, AGI, and taxable income describe different stages of your income. Here’s what you need to know:
| Term | What it means | Where you may see it |
|---|---|---|
| Gross income | Taxable income from all sources before adjustments and deductions | Across multiple income forms and schedules |
| Take-home pay | Pay remaining after taxes and payroll deductions | Pay stub |
| Adjusted gross income (AGI) | Gross income minus eligible adjustments | Form 1040 |
| Taxable income | AGI minus the standard or itemized deduction and other eligible deductions | Form 1040 |
Gross income and filing requirements
For most taxpayers under age 65, these are the general gross-income filing thresholds:
| Filing status | 2025 tax year | 2026 tax year |
|---|---|---|
| Single | $15,750 | $16,100 |
| Head of household | $23,625 | $24,150 |
| Married filing jointly, both spouses under 65 | $31,500 | $32,200 |
| Qualifying surviving spouse | $31,500 | $32,200 |
Source: Internal Revenue Service (1,2)
Different rules apply to taxpayers age 65 or older, dependents, and people with other filing requirements. Married taxpayers filing separately generally have a much lower threshold. You may also need to file if your net self-employment earnings are $400 or more, even when your gross income is below the amount shown in the table.
How to calculate your gross income
Employees can start with taxable wages on Form W-2 and add taxable interest, dividends, investment income, and other income. For example, $45,000 in wages, $500 in interest, and $300 in dividends generally add up to $45,800 in gross income.
Self-employed filers generally report business income and expenses on Schedule C. Business receipts aren’t the same as net profit, which is calculated after eligible business expenses.
