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.

[The entire page is 73 words long]

Join eNotes

The above is a free excerpt. Get total access to this content with the: