VITA Certification Practice Test 2026 – All-in-One Guide to Master Volunteer Income Tax Assistance!

Gross income is defined as all income received in money, goods, or services. This definition encompasses various forms of income that individuals or entities may receive, not limited to cash wages. It includes, but is not exclusively, salary, wages, dividends, interest, rental income, and other sources that contribute to an individual's overall financial inflow.

Understanding gross income is crucial for tax purposes, as it serves as the starting point for calculating taxable income, which is subject to various deductions and exemptions. Other options provided do not encapsulate this broad range of income sources. For example, net income after taxes focuses solely on earnings left after tax obligations, which is a subset of gross income. Income solely from wages restricts the definition to just one type of income source, and income that is exempt from tax would not be considered gross income because it excludes certain earnings that would otherwise be taxable.