Tax 4001 certification Study guides, Class notes & Summaries

How are realized income, gross income, and taxable income similar, and how are they different? - Realized income is more broadly defined than gross income which is more broadly defined than taxable income. Gross income includes all realized income that taxpayers are not allowed to exclude from gross income or are not permitted to defer to a later year. Consequently, gross income is the income that taxpayers actually report on their tax returns and pay taxes on. In the tax formula, ta...