Earned Income


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Earned Income

Sources of money derived from the labor, professional service, or entrepreneurship of an individual taxpayer as opposed to funds generated by investments, dividends, and interest.

Wages, salaries, and fees are types of earned income that, if below a statutorily determined amount, entitle a taxpayer to a reduction of Income Tax liability.

See: earnings
References in periodicals archive ?
Under a tax code provision known as the additional child tax credit, some of the credit may be refundable, depending on the amount of the taxpayer's earned income.
Holding: The Tax Court held that Redfield did not make a timely and valid foreign earned income exclusion election for 2010; thus, he was not entitled to exclude any of his foreign earnings from gross income pursuant to Sec.
It should be noted that these reductions are made in addition to any otherwise applicable income taxes that apply to the client's Social Security benefit--when an individual earns over $25,000 per year ($32,000 for a married client), one-half of his or her Social Security benefit plus any earned income will be taxable.
and the Computer & Communications Industry Association also help low-to-moderate income taxpayers file their taxes and claim the earned income tax credit for free.
A parent can elect to claim the 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] on the parent's return if: (1) the child's income is solely from interest and dividends; and (2) the income is more than $950 but less than $9,500; and (3) there has been no backup withholding or estimated tax payments under the child's taxpayer identification number.
5 million are living in low-income families and are supported by earned income.
Federal Earned Income Tax Credit (EITC): This is a refundable credit available to low-income working families.
The Earned Income Tax Credit (EITC) is one of the most significant cash-transfer programs for low-income families in the United States.
The earned income of Arab citizens of Israel is the lowest; up to the eve of the second Intifada, their earned income was on a downward trend.
He's clearly right to support an expansion of the Earned Income Tax Credit, under which government supplements the wages of low-income workers: The program is directly targeted at the working poor and is easy to administer.
Work is here divided into housekeeping and earned income activities.