What EARNED INCOME means: Earned income is income for services rendered as distinguished from income generated by property or other sources. Earned income includes amounts received as wages, tips, bonuses, other employee compensation, and self-employment income, whether in the form of money, services, or property. The definition of earned income is not the same for all income tax provisions. For example, alimony is treated as earned income only for purposes of determining how much an individual can contribute to an IRA.
- Definition Expensing:
- Dictionary when a taxpayer claims the section 179 expense deduction, defined elsewhere in this glossary, or currently deducts certain other expenditures that would ordinarily be required to be capitalized earned income definition.
- Definition Extension:
- Dictionary allows additional time to perform an act required by the tax law or by regulation. The term is used most often when referring to an extension to file the tax return, but it also applies to extensions earned income explain.
- Definition Expenses Of Sale:
- Dictionary When paid by the seller, these expenses reduce the sale price of property. Examples are commissions to a broker or real estate agent, title search, title insurance, legal fees, and transfer taxes earned income what is.
- Definition Exchange:
- Dictionary A transfer of property for other property or services. Some exchanges produce currently taxable income while others can be structured so as to defer any tax liability earned income meaning.
How works Earned Income meaning in Tax definitions E .
