Earned income

Tax System

Income from wages, salaries, tips, and net self-employment earnings, as distinguished from investment or unearned income. Required to qualify for the EITC and the refundable Additional Child Tax Credit.

Learn about this term

Unit 08: parenthood benefits

Tax System

Related Terms

Unearned income

Investment income such as interest, dividends, capital gains...

Self-employment tax

The Social Security and Medicare tax paid by self-employed i...

Additional Child Tax Credit (ACTC)

The refundable portion of the Child Tax Credit, allowing tax...