earned income
Money from labor
Earned income is money received for work performed, as opposed to passive income from investments, inheritance, or gifts.
Wages, salaries, tips, and self-employment profits all count as earned income: Tax rates differ for earned income versus capital gains.
The distinction matters for tax purposes and eligibility for certain benefits.
- salaryFixed periodic employment payment
- wagesPayment for work
- tax bracketTaxable income category
- commissionsPayments for services rendered
- gig workIndependent, temporary task employment
working for a living · freelance work · full-time employment · business profits · livelihood · sweat equity · bonuses · earnings · tips · bread and butter · consulting fees · self-employment · temporary work · payroll taxes · part-time employment · W-2 · internships · apprenticeships
- incomesalary, earnings, wages, pay, net earnings
- taxationtax, sales tax, tax return, tax refund, tax code
- income taxtax return, tax brackets, tax rates, tax bracket, tax rate
- tax terms1040, W-2, 1099, W-4, tax refund
- theater financebox office, ticket sales, ticket prices, ticket pricing, producers
- welfarewelfare, welfare reform, welfare system, SNAP benefits, public assistance
earned incomeunearned income
Gains without active work
passive income · investment income · capital gains · dividend income · interest income
earned incomepassive income
Money earned without labor
unearned income · free money · windfall · lottery winnings · found money
earned incomeinheritance
Property received from ancestors
trust fund · old money · bequest · windfall · lottery winnings