What is the definition of earned income

From Longman Business Dictionaryearned incomeˌearned ˈincome [uncountable]ECONOMICS money that you earn from work that you do, for example wages from your job or profit from your business. Earned income is usually taxed at a different rate to UNEARNED INCOMEYour pension is taxable as earned income. income

Examples of earned income

earned income

The voluntary pension insurance fees or transfers to a personal pension account are credited in earned income taxation up to 5000 per year.

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An earned income taxes of one-half of 1 percent of income yields a revenue of approximately $1.8 million.

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These plans allow for tax sheltered (or pre-tax) contributions of earned income directly to tax sheltered savings accounts.

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Rental/admission fees accounted for 72% of earned income in 2011, nearly three times the average for an art museum.

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For such a tax, the exemption only can be paid after knowing the earned income.

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Generally, the contribution can not exceed your earned income for the year in question.

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To be eligible, one must meet the earned income minimum requirement.

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Low-income households are most affected by expiring expansions of the child tax credit and earned income tax credit.

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Earned income, defined in 911 (d) (2), is exempt from the kiddie tax provision.

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For married taxpayers, expenses are limited to the earned income of the lower-earning spouse.

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These examples are from corpora and from sources on the web. Any opinions in the examples do not represent the opinion of the Cambridge Dictionary editors or of Cambridge University Press or its licensors.

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noun

income from wages, salaries, fees, or the like, accruing from labor or services performed by the earner.

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Origin of earned income

First recorded in 1880–85

Words nearby earned income

early wood, earmark, ear-minded, earmuff, earn, earned income, earned run, earned run average, earner, earnest, earnestly

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2022

How to use earned income in a sentence

  • Before 2021, you had to have at least some earned income to get the refundable portion of the child tax credit.

  • SSI participants cannot make more than $65 in earned income and $20 in unearned income each month, which is the same amount the program allowed when it began nearly 50 years ago.

  • The credit for qualifying children is fully refundable, which means that taxpayers can benefit even if they don’t have any earned income or don’t owe income taxes.

  • That’s not to say that increasing the minimum wage and expanding the earned income, child and child-care tax credits shouldn’t be a top priority for a new Democratic president and Congress.

  • The earned income tax credit program, a subsidy for people who don’t make enough to pay income taxes, could be expanded to make it worth it for more people to file a return.

  • Henri Paul actually worked for the French Secret Service and he had €200,000 in his account when he only earned €30,000 a year.

  • Travel Noire fellows earned about a half million travel miles in 2014.

  • Only one other Star Wars film has earned a PG-13 rating, the 2005 prequel Star Wars Episode III: Revenge of the Sith.

  • Since then, the rising gap between the rich and middle- and lower-income families has risen to the fore.

  • For the Brogpas, transforming into a tourist attraction may offer their community a way to generate much-needed income.

  • Government grants amount to about two-thirds of the income, the balance being raised by public subscription and from fees.

  • Oh, but surely if we have to call ourselves Wurzel-Flummery it would count as earned income.

  • They are raised on the strictest scientific principles and yield me the greater part of my income.

  • Nine-tenths of those who have a competence know what income they have, and are careful not to spend more.

  • With his vast income, acquired from the spoils of nearly every country in Europe, he maintained his high rank in lordly fashion.

British Dictionary definitions for earned income


noun

income derived from paid employment and comprising mainly wages and salaries

Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

What qualifies as earned income?

Earned income includes all the taxable income and wages you get from working for someone else, yourself or from a business or farm you own.

What is the difference between income and earned income?

Gross income is everything that an individual earns during one year, both as a worker and as an investor. Earned income includes only wages, commissions, bonuses, and business income, minus expenses, if the person is self-employed.

What are the six types of earned income?

Examples of earned income include hourly wages, salaries, tips, and business sales. Earned income should not be confused with unearned income such as interest and dividends from investments, pensions, Social Security payments, alimony, and child support.

What is earned income vs taxable income?

Earned income includes all the taxable income and wages you get from working or from certain disability payments. Taxable earned income includes wages, salaries, tips, and other taxable employee pay. It can also include union benefits and long-term disability benefits received prior to retirement age.