Was Is Earned Income?

The United States federal earned income tax credit or earned income credit is a refundable tax credit for low- to moderate-income working individuals and couples, particularly those with children. The amount of EITC benefit depends on a recipient's income and number of children.

What qualifies as earned income?

For the year you are filing, earned income includes all income from employment, but only if it is includable in gross income. Examples of earned income are: wages; salaries; tips; and other taxable employee compensation. Earned income also includes net earnings from self-employment.

What are examples of earned income?

Earned income includes money made from employment including wages, salaries, bonuses, commissions, tips, and net earnings from self-employment, according to the Internal Revenue Service (IRS) definition.