Active income

(redirected from Active Incomes)

Active income

Income from an active business as opposed to passive investment income according to the U.S. tax code.

Active Income

The regular compensation that an individual receives in the form of salary, wages, tips, commissions, and/or any other source. For example, rents and dividends are not considered active income because an individual does not need to do anything in order to earn them. An individual earns active (and passive) income in order to pay for personal expenses, such as a mortgage, debt service, groceries, etc. Active income is necessary for an economy to function. See also: Passive income, Portfolio income.