Ordinary Income
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Ordinary Income means wages, commissions, and interest earned is taxed at the ordinary income rates set by the federal government. There are different tax rates applied within a specific range of taxable income called tax brackets. Ordinary income can be offset with standard tax deductions and also capital gains income can be offset by a capital gains losses.
Think about everyday earnings like wages, commissions, and interest. It's taxed at standard bracket rates, unlike long-term capital gains.