Which of the following statements about gross income is correct?

Gross income represents all income received by an individual, and it is subject to federal income tax. This includes various forms of income such as wages, salaries, bonuses, rental income, dividends, and other types of earnings. According to the Internal Revenue Service (IRS), gross income encompasses all sources of income a taxpayer receives, which then lays the groundwork for calculating taxable income after allowable deductions.

The assertion regarding federal income tax is significant because it establishes that gross income is a preliminary figure from which tax calculations begin. Understanding that all of this income is subject to taxation is crucial for taxpayers when preparing their tax returns and managing their overall tax liability.

The other options misrepresent the concept of gross income. For example, the claim that it includes only income received within the US is misleading since gross income can also include foreign income for US citizens and resident aliens. Saying it excludes wages from jobs contradicts the definition, as wages are a primary component of gross income. Finally, stating that it consists solely of visual assets is incorrect; gross income does not pertain to assets like property or stocks but focuses on monetary income received during the tax year.