Earned Income
This refers to income that is earned from providing your personal services as distinguished from unearned income such as interest, dividends, pensions, capital gains and passive income. Examples of earned income would include W-2 wage income, commissions, net self-employment income and tips. Generally, earned income is subject to FICA withholding or self-employment tax and is the type of income that is required to qualify for IRA and self-employment pension plan contributions and the earned income credit.
|  |