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.

References in periodicals archive ?
Pan Ning-hsin, deputy director of the DGBAS census department, told reporters that the growth of average earned income in the first five months of the year was low because of smaller bonuses, overtime pay and other irregular income than in the previous year due to a slowdown of the domestic economy.
Raising or eliminating the payroll tax cap wouldn't affect the vast majority of the population, and in a way would be viewed as a means of leveling the playing field by making all earned income taxable, which is one reason it's so popular.
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.
Predictably, the IRS denied Linde's claim that he maintained his tax home and bona fire residence in Iraq, therefore denying the foreign earned income exclusion.
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.
The cliff effect associated with the Earned Income Tax Credit, for example, limits a taxpayer's investment income.
They are forgetting that all-important earned income allowance of two-ninths.
Iowa recipients shared a portion of more than $6 million in federal earned income tax credits and $16 million in federal tax refunds.
It begs the question: what is the logic behind unearned income being taxed at a lower rate than earned income? It seems heavily biased towards the wealth-owning classes.
(6) Dependents--every individual who may be claimed as a dependent of another must file a return for 2010 if he has unearned income in excess of $950 (plus any additional standard deduction if the individual is blind or elderly) or total gross income that exceeds the sum of any additional standard deduction if the individual is blind or elderly plus the greater of (a) $950 or (b) the lesser of (i) $300 plus earned income, or (ii) $5,700.