What is Ordinary Income?
Answer:
Ordinary income is income received that is taxed at
the highest rates or ordinary income rates. Ordinary income includes salary or wages, dividends from certain investments, gambling winnings – or any source of income that is subject to standard marginal tax rates – or does not qualify as a capital gain.

Unlike capital gains income, which can be offset with capital losses, ordinary income can only be offset by standard tax deductions. However, a short term capital gain may be taxed as ordinary income. Check with your tax attorney or accountant regarding the type of income you’re required to pay taxes on.
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