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Earned Income is wages, net earnings from selfâemployment, certain royalties, honoraria, and sheltered workshop payments. Unearned Income is all income that is not earned, such as Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, and cash from friends and relatives. InâKind Income is food or shelter that you get for free or less than its fair market value.
Earned income. Earned income is pay you receive for work you perform, and includes salaries, wages, tips, and professional fees. Your earned income is included in your gross income, along with unearned income from interest, dividends, and capital gains. If you have earned income, you're eligible to contribute to an individual retirement account (IRA). earned income