Earned vs Unearned Income: Why the IRS Cares (Tax Basics)
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Earned vs Unearned Income: Why the IRS Cares (Tax Basics)
The IRS treats earned income and unearned income very differently - and understanding the difference can save you money and help you plan better. In this Tax Tuesday episode, I break down: Earned income: Money from WORKING (W-2 wages, self-employment) Unearned income: Investment income (dividends, interest, capital gains, rental income) Why it ...
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The Social Security earned income limit, only applies if you have not yet reached your full retirement age. After your full retirement age, all of your sources of income are not capped. Prior to your full retirement age your wages are limited, but all sources of passive income are excluded from the Social Security earned income limit.
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