What do personal service incomes include?

Personal service incomes are derived from individuals' efforts and include a variety of compensation types for services rendered. The correct choice encompasses not only salaries and wages, which are typical forms of employment compensation, but also commissions, which are earnings based on performance or sales results. Commissions are common in sales positions and directly relate to the services provided by the individual.

The broad scope of what constitutes personal service income means it can derive from various employment arrangements beyond just basic salaries and wages. Including commissions reflects the reality that many individuals are compensated based on the revenue they generate or the successful completion of their work.

This clarity in definition helps understand personal service income as it is not limited to fixed salaries but also accounts for variable forms of compensation that reward service provision in different contexts.