Earned Income Definition: Earned income is the amount of money you receive for work or services provided to an employer or a customer as a self-employed person. Earned income is often received through salary or wages, commissions, tips, or payment for a specific contract, such as piecework.
This type of income may also include retirement, long-term disability, or union strike benefit payments. Income earned from a job or self-employment services, such as through a contract, is considered earned. In contrast, unearned income refers to passive income, which is revenue acquired through investments or royalties and not directly through the process of labor or providing a product or service.

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