Earned Income
Earned income is defined by the United States Internal Revenue Code as income received through personal effort, with the following as the main sources:
- Wages, salaries, tips, commissions, and other taxable employee pay.
- Net earnings from self-employment.
- Gross income received as a statutory employee.
- Disability payments through a private employer's disability plan received prior to minimum retirement age (62 in 2011).
- Nontaxable combat pay received by a member of the U.S. armed services which he or she elects to include for purposes of EIC calculation. This is an all-or-none election. For each tax year, the sevice member must elect to include either all of the combat pay or none of it.
Read more about this topic: Earned Income Tax Credit
Famous quotes containing the words earned and/or income:
““What have I earned for all that work,” I said,
“For all that I have done at my own charge?
The daily spite of this unmannerly town,
Where who has served the most is most defamed,
The reputation of his lifetime lost
Between the night and morning....””
—William Butler Yeats (1865–1939)
“The question for the country now is how to secure a more equal distribution of property among the people. There can be no republican institutions with vast masses of property permanently in a few hands, and large masses of voters without property.... Let no man get by inheritance, or by will, more than will produce at four per cent interest an income ... of fifteen thousand dollars] per year, or an estate of five hundred thousand dollars.”
—Rutherford Birchard Hayes (1822–1893)