Your money might end up in the same place, but it comes from different, earned and unearned, sources. Photo:TaxCredits.net. Understanding the difference between what is unearned income and what is ...

In accrual accounting, revenue is included as income when it is generated. The work is done, the company is paid, and the amount is entered as income. Only earned revenue – money exchanged for a good ...

Earned income is the money you earn through work or services, while unearned income is the money you receive without actively working for it. Both are crucial for financial planning and ...

Unearned income, also known as passive income, is derived from sources other than employment or business operations and can act as a financial safety net during times of job loss or financial crisis.

Earned income refers to the money that you make from working, including salaries, wages, tips and professional fees. Unearned income, comparatively, is the money that you receive without performing ...

Unearned revenue is the same thing as deferred revenue. In accounting, unearned revenue is a liability. It is a liability because even though a company has received payment from the customer, the ...

Your taxable income is your federal tax liability based on both earned and unearned income received during the tax year. An individual’s taxable income is the amount of money they’ve received over the ...

Revenue is income from a business's normal activities, like a landscaper's service fees. Unearned revenue is prepaid by customers and is a liability until services are rendered. Recording unearned ...

The kiddie tax is a set of tax rules designed to prevent parents from reducing their tax burden by shifting investment income to their children. It applies to children under the age of 18, or ...

Understanding the difference between what is unearned income and what is earned income is important, because they receive different tax treatments. The difference matters for other tax considerations, ...