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Earned income is basically, income that you worked for, such as wages and self-employment income. Things that were a by-product of other activities, such as interest earned on your bank account (if you're lucky enough to have any...) is unearned income.

Some things will surprise you what category they fit into. Unemployment benefits and alimony aren't earned income, even though you may feel like you worked for them. Rental income is also another example of unearned income. Disability income is considered earned income in most circumstances (although not all).

For a more detailed explanation and examples, IRS Publication 596 gives some good examples for the earned income tax credit. That definition is the same for other things that require earned income, such as contributing to an IRA.

IRS Pub 596: (See related Link)

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