unearned income

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Related to unearned income: Earned income credit

Unearned income (revenue)

Income received in advance of the time at which it is earned, such as prepaid rent.

Passive Income

Income from a venture in which an individual does not directly participate. The most common types of passive income are rents and income from a limited partnership. Some analysts consider income derived from securities such as dividends and coupons to be passive income, while others put it into a separate category as portfolio income. Passive income is taxable, but it is often treated differently than active income.

unearned income

Individual income, such as dividends, pension payments, and capital gains, that is derived from something other than personal services. Compare earned income.

unearned income

see EARNED INCOME.

unearned income

see EARNED INCOME.

Unearned Income

Taxable income other than that received for services performed (earned income). Unearned income includes money received for the investment of money or other property, such as interest, dividends, and royalties. It also includes pensions, alimony, unemployment compensation, and other income that is not earned.

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References in periodicals archive ?

As the age limit increased, however, so did the likelihood that the child would have more types of unearned income.

Paying for children's education can be taxing: investigating the kiddie tax, taxable scholarships, alternative minimum tax, and Form 1098-T reporting

Consequently, the taxable portion of college scholarships may be unearned income and subject to the kiddie tax.

Kiddie tax may be due on college scholarships

On both forms, Dewhurst gave income ranges for unearned income.

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Eliminating these traditional boundary lines the new Medicare tax provision is the first time in history unearned income would be subject to FICA taxation.

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For the record, I will be paying interest and dividends tax this year for the first time, because I receive unearned income from a real estate partnership.

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The new proposal would also apply the tax to unearned income, including capital gains, rents, royalties and dividends.

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Unearned income of a child [(1) under age 18, (2) under age 19 whose earned income does not exceed half of his or her own support, or (3) under age 24, if a full-time student, whose earned income does not exceed half of his or her own support] that exceeds $1,900 generally is taxed to the child at the parent's maximum rate (known as the "kiddie tax").

Uniform transfers/uniform gifts to minors acts

The SNP had previously claimed it would be too costly and time-consuming to tax unearned income.

Swinney U-turn on tax plans

Exhibit 3 shows the effects of varying the composition of earned and unearned income for the base assumption that Jim and Jean have $250,000 of AGI.

Is 2008 a good year to elect out of installment sale accounting?

Unearned income will give us the time we need to do important unpaid work, such as being good parents, stewards of our wealth and thoughtful citizens.

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The Dance Theatre's tribulations began after the company's peak in the late 1980s and early 1990s, when its unearned income dropped off because foundations and corporations had begun to shift their money toward other priorities such as healthcare, cancer research, AIDS, and education.

The business of art: financially burdened, nonprofit institutions struggle to make dreams come true