Earned Income
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
- 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:
- Own or operate a business or farm
- Are a minister or member of a religious order
- Are a statutory employee and have income
- 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, Armed Forces Tax Guide.
Earned income does not include:
- Pay you got for work when you were an inmate in a penal institution
- Interest and dividends
- Pensions or annuities
- Social Security
- Unemployment benefits
- Alimony
- Child support
- Shawnrabban@yahoo.com Shawn Rabban | 310-714-5616 | CAL Lic# 0613659 |
