Earned Income

What Does Earned Income Mean?
Income derived from active participation in a trade or business, including wages, salary, tips, commissions and bonuses. This is the opposite of unearned income.

Investopedia explains Earned Income
Earned income includes any income that a person or company receives for work they have done. If your boss gives you an advance on your next check, this would be considered unearned income because you haven't yet done anything to earn it.

Filed Under: Taxes

Related Terms

Active Income
Additional Child Tax Credit
Business Income
Earned Income Credit
Employee Stock Purchase Plan - ESPP
Passive Income
Suspended Loss
Tip Income
Unearned Income
Unearned Revenue
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