Total income before taxes, deductions, and other expenses.
Gross income is your total earnings before any taxes or deductions are taken out. For employees, gross income includes salary, wages, bonuses, and commissions shown on your pay stub before federal and state income taxes, Social Security, Medicare, health insurance, and other deductions. For self-employed people, gross income is total revenue from your business before business expenses. Lenders care about gross income because it shows your earning power; it's used to calculate debt-to-income ratios and to qualify for loans. Tax authorities also care about gross income because it's the starting point for calculating taxable income. Contrasting with net income (income after deductions), gross income is always larger and is important for understanding your true earning potential.