In the context of tax law, what is "income"?

In tax law, "income" is defined broadly to encompass any money, property, or services received that are subject to tax. This definition captures various sources of income beyond traditional earnings, including interest, dividends, rental income, business profits, and potentially even some forms of government assistance. The inclusive nature of this definition is crucial because it aligns with the principle that income is not limited to just one type or source; instead, it reflects the comprehensive approach the tax code takes to determine what is taxable.

This broader understanding of income is essential for individuals and businesses to accurately report their earnings and comply with tax obligations. It underscores the importance of keeping meticulous records of all receipts that may constitute taxable income to ensure that all applicable earnings are reported correctly when filing taxes. Understanding this definition is vital for anyone involved in tax preparation or financial planning, as it influences decisions regarding income recognition, deductions, and tax liabilities.