What is earned income?

Created by Shubha Bisht, Modified on Wed, 24 Jan 2024 at 02:03 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:

  • 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:

This content is provided for informational purposes only and should not be construed as tax, legal, financial, accounting, or other advice. Rules and regulations vary by location and are subject to change, so please consult with an expert if you need advice specific to you.


Any third-party links are provided for informational purposes only. The third parties and their sites are not endorsed by Beem and Beem is not responsible for, and has no control over, their content, privacy policies, or terms of service.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article