earned income

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Related to earned: Earned income credit

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 ?
Foreign earned income is received from sources within a foreign country attributable to services performed during a period of bona fide residency or physical presence.
As government employees, direct hires and PSC employees are ineligible for the foreign earned income exclusion; see 48 CFR Chapter 7, Appendix D, Direct USAID Contracts With A U.
She earned the Girl Scout Image Award in 2004, presented to a member of Scouting who goes above and beyond the call of duty.
Compound interest, on the other hand, is the interest earned on the principal plus interest that was earned earlier.
He earned his degree in industrial engineering from General Motors Institute.
Tell campers a note will be in their mailboxes at the end of the day on Wednesday, after total scores are tallied, informing them what service they purchased with the points they earned.
If the miles were earned from personal travel paid for by an individual, the free miles awarded represent only a purchase price adjustment, not taxable income.
Eighty-four percent of CFOs employed by companies with annual incentive plans earned awards in 1995.
Slightly over half - 52 percent of the 942 women included in the study - earned to support the family.
In a perfect world, of course, we wouldn't need the Earned Income Tax Credit.
More than 600 schools throughout Michigan earned more than 1,500 computers and printers valued at approximately $2 million.