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. (July 27, 2016). http://www.encyclopedia.com/doc/1G2-3437704311.html
"Taxable Income." West's Encyclopedia of American Law. 2005. Retrieved July 27, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3437704311.html