gross income

Definition

Pre-tax net sales minus cost of sales. also called gross profit.

For more information, see Gross vs Net.

Use gross income in a sentence

If an business makes a sale of goods or services, that money before deduction of related expenses for production, taxes, or business operations is gross income.

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Ted always winced when he compared his gross income to what he actually received once taxes were removed and tried to avoid looking at that part of his paycheck.

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John looked at his gross income numbers, and decided he needed to figure a way to cut into his costs. He either had to increase his revenue or decrease his costs, but he wanted to increase his gross income.

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AGI 1120-ND Form