Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer.
"Taxable Income." West's Encyclopedia of American Law. 2005. Encyclopedia.com. (June 26, 2016). http://www.encyclopedia.com/doc/1G2-3437704311.html
"Taxable Income." West's Encyclopedia of American Law. 2005. Retrieved June 26, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3437704311.html