Active Income

What Does Active Income Mean?
Income for which services have been performed. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation.

Investopedia explains Active Income
There are three main categories of income: active income, passive income and portfolio income. These categories of income are important because losses in passive income generally cannot be offset against active or portfolio income.

Related Terms

Income
Material Participation Test
Passive Activity
Passive Activity Loss Rules
Passive Income
Portfolio Income
Social Security
Taxable Income
More Related Terms

Related Links

Protecting Your Income Source - Social Security benefits can be hard to collect. Should disability insurance be a part of your financial plan?
Income Distribution - A paper by Ruben Cohen on the dynamics of wages, incomes and earnings.

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