earned income

(redirected from earns)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia.

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 ?
In that remote day, that man will earn, with ONE week's work, that bill of goods which it takes you upwards of FIFTY weeks to earn now.
He wants you to marry, and I told him I would give you a chance to earn your dot.
I'm going to earn my living as an artist," Miss Price answered.
At present, however," she said, after another slight pause, "I earn about eighteen hundred dollars a year.
I'm going to earn from five to ten thousand pound by the sweat of my brow; and as a poor man doing justice to the sweat of my brow, is it likely I can afford to part with so much as my name without its being took down?
Talk away, my son, say whatever comes into your head or mouth, for so long as you feel no pain, the irritation your impertinences give me will he a pleasure to me; and if you are so anxious to go home to your wife and children, God forbid that I should prevent you; you have money of mine; see how long it is since we left our village this third time, and how much you can and ought to earn every month, and pay yourself out of your own hand.
I know that I can earn but little by my labours as a copyist; yet even of that little I am proud, for it has entailed WORK, and has wrung sweat from my brow.
Could she get over the next six weeks, however, she would be comparatively rich, and, as her lease would be out in two months, she determined to get cheaper lodgings in the country, remove her grandmother, purchase another handkerchief--if possible one of my family--and while she lived on the fruits of her present labors, to earn the means for a still more remote day.
It is well;" he-said, after a pause, "that you are acquainted with something useful, something that may enable you to earn your board and lodging: since you know French and German, I will take you as second clerk to manage the foreign correspondence of the house.
Now it came to pass that his father said to him one day: 'Hearken to me, you fellow in the corner there, you are growing tall and strong, and you too must learn something by which you can earn your bread.
Colonel MacAndrew had not exaggerated when he said she would be penniless, and it was necessary for her to earn her own living as quickly as she could.
In the place of the gypsy, on the carpet, whose arabesques had seemed to vanish but a moment previously by the capricious figures of her dance, the archdeacon no longer beheld any one but the red and yellow man, who, in order to earn a few testers in his turn, was walking round the circle, with his elbows on his hips, his head thrown back, his face red, his neck outstretched, with a chair between his teeth.