Earned Income definition: Copy, customize, and use instantly
Introduction
The term "Earned Income" refers to income derived from active participation in a trade or business, such as wages, salaries, bonuses, and commissions. It is important in tax, financial, and contractual contexts, as it determines eligibility for various benefits, such as tax credits and deductions. Understanding how "Earned Income" is defined ensures accurate tax reporting and compliance in financial agreements.
Below are various examples of how "Earned Income" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Earned Income" as wages and salaries
This definition ties "Earned Income" to income from employment or services.
"Earned Income" means wages, salaries, and other compensation received for personal services or employment, including commissions and bonuses.
Definition of "Earned Income" in a business context
This definition connects "Earned Income" to income from business activities.
"Earned Income" refers to income derived from active participation in a business or trade, including income from services performed, sales, or other business operations.
Definition of "Earned Income" as taxable compensation
This definition applies "Earned Income" to the context of taxable income.
"Earned Income" means any compensation received for services rendered, including wages, salaries, and fees, that is subject to taxation under applicable tax laws.
Definition of "Earned Income" in relation to self-employment
This definition links "Earned Income" to income from self-employment.
"Earned Income" refers to income generated from self-employment or freelance work, including payments for services rendered or goods provided.
Definition of "Earned Income" for tax purposes
This definition connects "Earned Income" to its use in tax calculations.
"Earned Income" means income derived from employment or active business participation, used in determining eligibility for tax benefits, such as the Earned Income Tax Credit.
Definition of "Earned Income" as professional fees
This definition applies "Earned Income" to income from professional services.
"Earned Income" refers to professional fees received for services rendered by an individual or entity in a specific profession, including legal, accounting, or consulting services.
Definition of "Earned Income" for social security contributions
This definition ties "Earned Income" to its role in social security benefits.
"Earned Income" means income subject to social security taxes, including wages, salaries, and compensation from self-employment.
Definition of "Earned Income" in the context of commissions
This definition connects "Earned Income" to income from commissions.
"Earned Income" refers to compensation earned through commissions, including earnings from sales or services where income is based on performance.
Definition of "Earned Income" for eligibility in government programs
This definition links "Earned Income" to eligibility for government programs and benefits.
"Earned Income" means income that qualifies an individual for certain government assistance programs, such as food assistance or health care subsidies, based on earnings from employment or business activities.
Definition of "Earned Income" for pension calculations
This definition ties "Earned Income" to pension and retirement benefit calculations.
"Earned Income" refers to wages, salaries, and other compensation used to determine pension or retirement plan contributions, benefits, or eligibility.
Definition of "Earned Income" as business revenue
This definition connects "Earned Income" to revenue generated from business activities.
"Earned Income" means revenue received by a business or individual from performing services, selling goods, or other business operations that involve active participation.
Definition of "Earned Income" in partnership agreements
This definition links "Earned Income" to partnership compensation.
"Earned Income" refers to compensation paid to partners for services rendered to the partnership, including salaries, bonuses, and profit distributions from active participation in business operations.
Definition of "Earned Income" for income verification purposes
This definition connects "Earned Income" to income verification in financial agreements.
"Earned Income" means compensation received from employment or business activities, used to verify income for financial agreements or loan applications.
Definition of "Earned Income" in family law contexts
This definition ties "Earned Income" to its use in family law, particularly in calculating support payments.
"Earned Income" refers to wages, salaries, or other compensation from employment, used to calculate child support, spousal support, or alimony in family law proceedings.
Definition of "Earned Income" for employee benefits eligibility
This definition connects "Earned Income" to eligibility for employee benefits.
"Earned Income" means compensation received by an employee, including wages, salaries, bonuses, and commissions, used to determine eligibility for employee benefits such as health insurance or retirement plans.
Definition of "Earned Income" in student loan calculations
This definition links "Earned Income" to student loan repayment calculations.
"Earned Income" refers to income from employment or self-employment, used to calculate repayment amounts for income-driven student loan programs.
Definition of "Earned Income" for credit assessment
This definition connects "Earned Income" to creditworthiness evaluations.
"Earned Income" means income received from employment or self-employment, used in assessing an individual's creditworthiness for loans or credit applications.
Definition of "Earned Income" as contract compensation
This definition ties "Earned Income" to compensation received under a contract.
"Earned Income" refers to compensation received under an employment contract or other contractual agreements, based on services performed or goods provided.
Definition of "Earned Income" in collective bargaining agreements
This definition links "Earned Income" to collective bargaining agreements and union negotiations.
"Earned Income" means wages or salary paid to employees as negotiated under a collective bargaining agreement, including overtime, bonuses, and other compensations for labor.
Definition of "Earned Income" for real estate transactions
This definition ties "Earned Income" to income from real estate services.
"Earned Income" refers to income received from providing real estate services, including commissions from property sales, rentals, or property management activities.
Definition of "Earned Income" for workers' compensation claims
This definition connects "Earned Income" to workers' compensation calculations.
"Earned Income" means wages and salaries received by an employee, used to calculate benefits in workers' compensation claims, particularly for lost wages due to injury or illness.
Definition of "Earned Income" for royalty agreements
This definition applies "Earned Income" to royalties and licensing agreements.
"Earned Income" refers to income received from royalties or licensing fees, where the income is generated by actively managing or providing services related to intellectual property.
Definition of "Earned Income" in professional sports contracts
This definition links "Earned Income" to compensation in professional sports.
"Earned Income" means compensation received by athletes, including salaries, performance bonuses, and prize winnings, as defined in their professional sports contracts.
Definition of "Earned Income" for real-time service providers
This definition ties "Earned Income" to income for providers of on-demand services.
"Earned Income" refers to income generated from providing services on a per-task basis, including payments for freelance, gig, or real-time service providers.
Definition of "Earned Income" for health care professionals
This definition connects "Earned Income" to compensation for health care services.
"Earned Income" means income derived from providing health care services, including payments for consultations, treatments, or medical procedures performed by health care professionals.
Definition of "Earned Income" as shareholder distributions
This definition links "Earned Income" to income from business ownership.
"Earned Income" refers to income received by shareholders from active involvement in the business, including dividends or distributions based on their performance within the company.
Definition of "Earned Income" in artist compensation agreements
This definition ties "Earned Income" to compensation for artists' works.
"Earned Income" means royalties, performance fees, or payments received by artists for the sale or display of their works, where income is earned through active participation in their craft.
Definition of "Earned Income" in commission-based roles
This definition connects "Earned Income" to commission-based earnings.
"Earned Income" refers to earnings derived from commissions, where compensation is based on the performance or volume of sales or services rendered.
Definition of "Earned Income" for tax deductions and credits
This definition ties "Earned Income" to its impact on tax deductions.
"Earned Income" means income that qualifies for tax deductions or credits, such as the Earned Income Tax Credit, based on earnings from employment or business activities.
Definition of "Earned Income" in long-term contracts
This definition connects "Earned Income" to compensation received for long-term contractual engagements.
"Earned Income" refers to payments received over time under a long-term contract, including wages, fees, or other compensation for ongoing services rendered.
Definition of "Earned Income" for retirement plan contributions
This definition links "Earned Income" to retirement plan contributions.
"Earned Income" means income earned from employment or self-employment, used to calculate contributions to retirement plans such as 401(k) or IRA accounts.
Definition of "Earned Income" in joint ventures
This definition connects "Earned Income" to income from joint venture participation.
"Earned Income" refers to compensation earned through
active participation in a joint venture, including profits or fees earned from joint business activities.
Definition of "Earned Income" in legal settlements
This definition ties "Earned Income" to compensation from legal settlements.
"Earned Income" means money received as part of a legal settlement or award, where compensation is earned for services, work, or activities performed before the settlement.
Definition of "Earned Income" for foreign tax credit calculations
This definition connects "Earned Income" to foreign tax credits.
"Earned Income" refers to income received from foreign sources, used to calculate eligibility for foreign tax credits under international tax laws.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.