"Negative income" typically refers to a situation where an individual or entity's total expenses exceed their total income, resulting in a net loss. It is also commonly known as a "negative taxable income" or "tax loss." It is important to note that negative income, whether in a business or personal context, may have different legal and financial implications. Businesses with negative income may be subject to specific reporting requirements, tax implications, or potential bankruptcy considerations. Individuals with negative income may face challenges in meeting financial obligations, accessing credit, or incurring tax consequences. It is advisable to consult with a qualified accountant, financial advisor, or legal professional to understand the specific implications and potential courses of action in a given situation.
[Last updated in July of 2023 by the Wex Definitions Team]