income from personal services. Earned income generally includes wages, salaries, tips, and other employee compensation. Compensation includes items that can be excluded from gross income, such as lodging, or meals furnished for the employer's convenience. Earned income also includes any net earnings from selfemployment. Pension and annuity payments are not included.
tax term describing "sweat of the brow" income, which requires obvious effort on the part of the recipient. This includes all income generated by providing goods or services, especially wages and salaries but also net profit from a trade or business; it is contrasted with income received as dividends, for instance.
income (especially wages and salaries) generated by providing goods or services. Also, pension or annuity income.
revenue recognized on accounting ledgers as earned when the goods or services associated with the revenue are sold or delivered to the buyer. For example, in magazine income accounting, the pro rata value of all copies served, based on the subscription price divided by the total number of issues to be served, is earned income. The value of copies not yet served is deferred income.
