Increasing the income of rural residents is a vital tool for poverty alleviation. Therefore, it is of a great practical significance to discuss the impacts of rural residents’ income on poverty. On the basis of inner logical relationship between income and poverty and the panel data of rural residents’ income in China from 2010 to 2017, this paper discussed the impacts of rural residents’ income on poverty by a dynamic econometric model. Results show that, as income of rural residents increased, poverty was alleviated. The changes of the net income of property and transfer income of rural residents, which has a lasting negative impact on the population in poverty and the incidence of poverty at the national scale, are the major factors affecting poverty. The wage income and the net business income have weak impacts on poverty. The net transfer income of rural residents has made a greater contribution to the change of the incidence of poverty than to the change of the population in poverty, and the net property income of rural residents has made a greater contribution to the change of the population in poverty than to the change of incidence of poverty. In addition, there exist spatial differences between the impacts of the change of income of rural residents on poverty. Finally, to improve the targeted poverty alleviation, poverty relief programs should increase different types of income of the poor according to the population and incidence of poverty of the targeted regions in the future.