What does gross income refer to?

Gross income refers to the total earnings received by an individual or business before any deductions or expenses are taken into account. This encompasses all sources of income, including wages, salaries, bonuses, tips, interest income, rental income, and any other earnings. Understanding gross income is crucial because it serves as the starting point for calculating net income, which is what individuals ultimately take home after taxes and other deductions are applied.

While other concepts mentioned in the choices relate to income in specific contexts, they do not encompass the comprehensive definition of gross income. For instance, the earnings after deductions speak to net income, which is just a portion of the financial picture. Similarly, profit from investments typically refers to net gains after costs and expenses, and social security benefits represent a specific type of income rather than a broader category. Therefore, recognizing gross income as the total earnings before any deductions correctly captures its definition and significance in personal finance and taxation.