earned income

(redirected from earn)
Also found in: Dictionary, Thesaurus, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.

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 periodicals archive ?
Bush stereo CD/radio cassette player: To earn enough vouchers pounds 7,500 (pounds 18.
American AAdvantage members will earn 1,000 bonus miles for American flights between Los Angeles (LAX) and San Francisco (SFO).
The law stated that a mother "may be absent [from home] for work a definite number of days each week to be specified in the court's order," and women received an examination to determine the degree to which they could earn wages.
AFIP's Basic Certification earns four credits, Senior Certification earns an additional two credits and Master Certification earns an additional two credits, meaning a student can transfer a maximum of eight credits to Northwood from certifications by AFIP.
Carlson Hotels' goldpoints plus program can earn triple points for their second and subsequent stays at Radisson, Park Plaza, Country Inn and Park Inn hotels, Between October 1 and December 31.
To be awarded the CITP designation, candidates must earn a minimum of 30 lifelong learning points within the three-year period preceding the application date for certification (with at least 5 points earned each year).
AAdvantage members can earn up to 60,000 bonus miles between March 2 and May 26, on American's new flights from Dallas Love Field and DFW to Kansas City, St.
Only 4 percent of all Scouts earn the rank of Eagle.
At health maintenance organizations (HMOs) associate administrators earn $63,000 and chief administrators earn $94,000.
The 50 percent discount off tax preparation services is capped at $75 ($85 in latter years) for the referral with dependents who earns less than $40,000; $20,000 for those without dependents.
AAdvantage members can earn up to 36,000 bonus miles by flying eight roundtrips to/from Denver or to/from any American destination in California, Oregon or Washington, through Feb.
Students who earn a business or engineering degree not only earn more money after they graduate but borrow less to start with than those majoring in history, English or another liberal arts field, according to a study by two professors at Wichita State University in Kansas and the University of Memphis in Tennessee.