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.
References in periodicals archive ?
Eliminating these traditional boundary lines the new Medicare tax provision is the first time in history unearned income would be subject to FICA taxation.
But that takes us back to 1923 and the decision to tax only unearned income.
Even if the child has unearned income subject to the kiddie tax, any earned income will still be taxed at the child's own rates (which are usually lower).
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.
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 unearned income side,'' John Karevoll, an analyst at DataQuick Information Systems, said last week while explaining another month of strong sales counts and big gains in price appreciation.
OVER THE DECADE, INDIVIDUAL CONTRIBUTIONS INCREASED FROM 27 PERCENT TO 36 PERCENT OF UNEARNED INCOME.
Candidate proxies for bargaining power have included: (1) public provision of resources to a particular member of the household and exogenous policy changes which affect the intrahousehold distribution of these resources (Lundberg, Pollak, and Wales 1997; Rubaclava and Thomas 1997); (2) shares of income earned by women (Hoddinott and Haddad 1995); (3) unearned income (Thomas 1990; Schultz 1990); (4) inherited assets (Quisumbing 1994); (5) assets at marriage (Thomas, Frankenberg, and Contreras 1997); and (6) current assets (Doss 1996).
The populist framers of the original income tax wanted to reach the unearned income of the very wealthy, which arose largely from land and resources that nature--not their own toil--had created.
Today the Republicans want to shift the entire tax burden onto work, through a misnamed "flat tax" that includes a gaping exemption for unearned income.
Your top tax rate applies to your child's unearned income above $1,200.
5 percent tax on unearned income (including interest on all state and local tax exempt municipal bonds);