What is earned income?

Created by Shubha Bisht, Modified on Wed, 24 Jan at 2:03 PM by Shubha Bisht

Per the IRS, 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.

Types of earned income include but are not limited to the following:

Wages, salary or tips where federal income taxes are withheld on Form W-2 (box 1)
Income from a job where your employer didn’t withhold tax (such as gig economy work) including:
- Driving a car for booked rides or deliveries
- Running errands or doing tasks
- Selling goods online
- Providing creative or professional services
- Providing other temporary, on-demand or freelance work
Money made from self-employment, including if you:
- Own or operate a business or farm
- Are a minister or member of a religious order
- Are a statutory employee and have income
Benefits from a union strike
Certain disability benefits you got before you were the minimum retirement age
Nontaxable Combat Pay (Form W-2, box 12 with code Q)
- If you claim nontaxable combat pay as earned income, it may increase or decrease the amount of your EITC. For more information, see Publication 3.

Additional Resources:

IRS Resource: What is unearned income?

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