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 ?
Previous tests have either treated earnings as exogenous or have treated unearned income or some portion of unearned income (for example, property income, transfers) as exogenous.
Do husbands and wives pool their resources? Evidence from the United Kingdom Child Benefit
If the scholarship is fully excluded from gross income, the child will have $10,000 of earned income, $1,500 in unearned income, with taxable income of $1,150 after it is reduced by the standard deduction for dependents (limited to $350 plus earned income of $10,000) and will owe $115 in federal tax.
Counterintuitive tax planning: Increasing taxable scholarship income to reduce taxes
There is no tax advantage for Susie to have net unearned income because the parents' higher tax rate is used for the net unearned income.
Financing for college with the Uniform Transfers to Minors Act: make the zero rate for qualified dividends and net capital gain work toward building a college fund
If unearned income is greater than earned income, the need for DI is minimal.
Choosing the perfect DI prospect: sorting out the good, the bad and the ugly
(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.)
Here's the truth about the 'LLC tax'
And I do believe in taxing unearned income at higher rates than earned income.
Our sinful economy
Children subject to the Kiddie Tax pay tax at their parents' top marginal rates on the child's unearned income over $1,700 (for 2006) if that tax exceeds the tax the child would otherwise pay on that income.
TIPRA highlights: new law generally favors taxpayers
``This is usually set against unearned income which has not suffered a charge for NIC.
Self-employed tax advice
Savills managing director Mark Harris said: 'This exclusive self-certification mortgage benefits the environment through the Co-operative Bank's ecologically friendly policy, as well as offering greater flexibility to people looking to boost the amount they want to borrow, particularly the newly self-employed and borrowers who want to increase their lending limits by including unearned income.
Personal Finance: 'Green' mortgage looks a cert
Now, if the child is under age 14, his/her unearned income (as opposed to earned income, as from delivering newspapers) is taxed at the parent's rate except for first $1,300.
Uniform gift to minors account
An UGMA offers a tax-saving opportunity if the assets generate less than $1,300 of unearned income per year.
Getting a head start: tax return filing made simple
The solution to the preference maximization problem (4) for the mother's labor force participation is a function of available wages, the number of children, unearned income, maternal care productivity, and the utilization, quality and cost of nonmaternal care.
Child care and the labor supply of married women: reduced form evidence

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