Income is the compensation you receive in exchange for labor, services, the sale of goods or property, or as a profit from investments. Income can be in many forms, including cash or cash equivalents, properties, securities, and services.

Generally, amounts included in your income are taxable unless they are specifically exempted by law. You are usually taxed on income available to you, regardless of whether the income is actually in your possession. For example, an uncashed check is available to you any time you need it, so it is considered income when received.

Common Example of Income:

Alimony
Dividends
Interest
Social Security
Tips