earned income

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Earned income

Compensation earned from employment, which includes wages, salary, tips, and compensation.

Earned Income

Income from salaries, wages, commissions, tips, bonuses, and any other source related to the work one does. Earned income specifically excludes income from investments. Earned income is taxed at one's regular income tax rate. See also: Marginal tax rate.

earned income

Individual income, such as commissions, salaries, and bonuses, that is derived as compensation for personal services. Compare unearned income.

Earned income.

Earned income is pay you receive for work you perform, and includes salaries, wages, tips, and professional fees.

Your earned income is included in your gross income, along with unearned income from interest, dividends, and capital gains. If you have earned income, you're eligible to contribute to an individual retirement account (IRA).

earned income

that part of a person's income earned from employment or self-employment (WAGES, SALARIES, FEES. COMMISSIONS and PROFITS). By contrast unearned income derives from the ownership of assets (interest and dividends from investment, rents from property, etc.) or can take the form of unemployment benefits, old age pensions, etc. See INCOME.

earned income

the return accruing to LABOUR for work done. The distinction between earned and unearned INCOME is made by the INLAND REVENUE for ease of assessment and collection of INCOME TAX. Earned income comprises WAGES, SALARIES, FEES, COMMISSION and PROFITS attributable to sole proprietors and partners within partnerships. Unearned income, by contrast, is primarily the return accruing to NATURAL RESOURCES and CAPITAL in the form of rental income, DIVIDENDS or INTEREST received. Earned income is generally taxed progressively, commencing with a tax-free income band and progressively increasing the rate of TAXATION in predetermined bands of income as income increases.

The distinction between earned and unearned income is not a valid one in economics as all FACTORS OF PRODUCTION can be said to ‘earn’ income. Even from the taxation authorities'view, the distinction has been controversial, the argument being put forward that unearned income is the result of investing from the SAVINGS of income previously earned. See INCIDENCE OF TAXATION, PROGRESSIVE TAXATION.

Earned Income

Earned income is income for services rendered as distinguished from income generated by property or other sources. Earned income includes amounts received as wages, tips, bonuses, other employee compensation, and self-employment income, whether in the form of money, services, or property. The definition of earned income is not the same for all income tax provisions. For example, alimony is treated as earned income only for purposes of determining how much an individual can contribute to an IRA.
References in classic literature ?
Crimsworth has set me; I can earn my wages conscientiously, and those wages are sufficient to enable me to live.
The father sighed, and answered him: 'You shall soon learn what it is to shudder, but you will not earn your bread by that.
But, reverend master, it is not sufficient to pass one's life, one must earn the means for life.
I'm going to earn my living as an artist," Miss Price answered.
I worked long enough to earn money for my breakfast, and it seems to me, as I remember it now, to have been about the best breakfast that I have ever eaten.
So he told his wife, Aunt Em, of his trouble, and she first cried a little and then said that they must be brave and do the best they could, and go away somewhere and try to earn an honest living.
I suppose I'll just have to drop out next year," she thought drearily, "and teach a district school again until I earn enough to finish my course.
To earn money by all means," she answered, laughing.
He has reduced himself to poverty, and intends to go to sea again to earn a living.
Having been challenged by the blacksmith, in a spirit of banter, to attempt the breaking of a certain incorrigible colt, he succeeded so signally as to earn quite a reputation as a horse-breaker.
Of course, he cautioned himself, it would be slow succeeding at first, and for a time he would be content to earn enough money by his writing to enable him to go on studying.
cried the King, unsheathing his consoler-under- disappointment; "how dare you claim my daughter when you have done nothing to earn her?