Unearned Income

AAA

DEFINITION of 'Unearned Income'

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

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. IRS Publication 929: Tax Rules ...

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

    Income derived from active participation in a trade or business, ...
  3. Unearned Revenue

    When an individual or company receives money for a service or ...
  4. Taxable Income

    The amount of income that is used to calculate an individual's ...
  5. Passive Income

    Earnings an individual derives from a rental property, limited ...
  6. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
Related Articles
  1. Retirement

    Will Your Retirement Income Be Enough?

  2. Options & Futures

    Choosing The Best Disability Insurance ...

  3. Options & Futures

    What investments are available to someone ...

  4. Taxes

    How much will it cost to hire an accountant ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center