Ordinary income refers to any type of income earned by an individual or organization that is subject to taxation at the ordinary income tax rates. It includes various sources of income, such as wages, salaries, tips, bonuses, self-employment income, interest, dividends, and rental income. Ordinary income is typically distinguished from other types of income that may be taxed at different rates, such as long-term capital gains or qualified dividends. The tax rates applicable to ordinary income are determined by the tax laws and regulations of the relevant jurisdiction.
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