What is earned income?
Updated over a week ago

This article was updated for Tax Year 2023, last edited on December 21st, 2023.

Per the IRS, 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 include but are not limited to the following:

  • 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:

  • 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.

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