Unearned Income


DEFINITION of 'Unearned Income'

Any income that comes from investments and other sources unrelated to employment services.

BREAKING DOWN 'Unearned Income'

Examples of unearned income include interest from a savings account, bond interest, alimony, and dividends from stock. As long as this income is "realized" then it is taxable.

  1. Passive Income

    Earnings an individual derives from a rental property, limited ...
  2. IRS Publication 929: Tax Rules ...

    A document published by the Internal Revenue Service (IRS) that ...
  3. Earned Income

    Income derived from active participation in a trade or business, ...
  4. Taxable Income

    The amount of income that is used to calculate an individual's ...
  5. Unearned Revenue

    When an individual or company receives money for a service or ...
  6. Taxes

    An involuntary fee levied on corporations or individuals that ...
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