Adjusted gross income is used for computing various income tax deductions , such as medical expenses. Earned income is money received for personal effort.
Earned income is usually in the form of wages, salary, commission, fees, tips, or bonuses.
Passive income results from business activities in which you do not actively participate, such as a limited partnership. Other income includes alimony, awards, lottery winnings, and prizes. An exclusion is an amount not included in gross income. Tax-exempt income is income that is not subject to tax. Interest earned on most state and city bonds is exempt from federal income tax.