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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)
What else can I help you with?
Are corporate dividends an example of income earned but not received?
true
Is not an example of earned income?
I can not answer this question because i do not have enough information. In order for me to answer this question i would have to have a list.
Is annuity income earned income?
No, earned income has to come from wages or self-employment.
What is the difference between direct income and indirect income?
1. Direct income is one which is earned directly by way of business activities. 2. Indirect income is one which is earned by way of non- business activities. For example, sale of old newspapers, sale of carton boxes, etc.
Can you receive tax refund if you have no income?
no you may not If you have no earned income, you would not qualify for the earned income credit.
Is salary an example of earned income?
Yes.
Which of the following is not an example of earned income?
investments
Are corporate dividends an example of income earned but not received?
true
How is Social Security an example income redistribution?
Social Security is an example of income redistribution by taking a small amount of earned income and storing it over time.
What is an example sentence of for the word income tax?
Citizens and corporations must pay income tax on all earned money, even if it is earned overseas.
What is an example of an earned income?
Lisa's neighbors pay her to babysit their children.
Are pension and IRA payments considered earned income?
Definitions: Earned income - is received from services performed. For example, wages, commisions, tips, and business income. Unearned income - is generally income that the does meet the definition of earned income. Examples include interest, dividends, rents, and royalties. Pensions and IRA distributions would fall into this category.
Is not an example of earned income?
I can not answer this question because i do not have enough information. In order for me to answer this question i would have to have a list.
Which is NOT an example of a transfer payment?
A letter to a friend is NOT an example of a transfer payment.
Is annuity income earned income?
No, earned income has to come from wages or self-employment.
Is salary an earned income?
Yes any income that you work for would be earned income.
Can you get earned income back if you are on workerscomp?
NO workers compensation for an on the job injury is not qualified taxable earned income for the earned income credit.
