Alimony | Annuity payments |
Bonuses | Business income |
Capital gains | Child support |
Commissions | Consulting fees |
Cryptocurrency gains | Dividend income |
Estate income | Farm income |
Fellowship income | Foreign exchange gains |
Foreign income | Franchise income |
Freelance income | Gambling winnings |
Interest income | Lawsuit settlements |
Licensing income | Life insurance cash value withdrawals |
Partnership income | Patent income |
Pension income | Prizes & awards |
Rental income | Residual income |
Retirement account withdrawals | Royalties |
Royalty trust income | Salary |
Scholarships and grants | Self-employment income |
Severance pay | Social security benefits |
Stock options income | Tips |
Trust income | Unemployment compensation |
Wages | Workers compensation |
Labor
A salary or wage that is paid in return for work.Business Profits
The net income of a business that creates and captures value.Tangible Assets
A tangible asset is a physical thing that has potential to generate income such as an apartment that can be rented.Intangible Assets
An intangible asset is a non-physical thing that has potential to generate income such as a copyright on a song that generates royalties.Capital Gains
An investment that goes up in value and is then sold resulting in a profit. For example, a stock that is sold at a higher price than its purchase price.Dividends
Dividends paid by a company that you own or partially own. This represents a share of profits generated by value creation.Interest
Loaning money to a government, bank, business or other entity in return for interest payments.Royalties
Payments made to the owners of intellectual property such as the copyright on music.Residuals
Residuals are ongoing payments made to creative professionals such as actors, writers and directors for the reuse or rebroadcast of their work. These can continue for a long period of many decades after the work is originally published.Rent Seeking
Rent seeking is the practice of seeking more income without creating more value or taking any risk. For example, an industry that lobbies government to be paid a subsidy.Speculation
Risk taking that doesn't create value but seeks income by trying to predict price changes. For example, buying the stock of a company because you think the price will increase as opposed to thinking the company will actually generate a profit.Active Income
Income that results from direct value creation such as your labor or a business that you control. Assets that you directly control such as a rental property are also active income.Passive Income
Income that results from processes that require no participation. For example, the interest income or dividends from a stock purchase. Passive income requires capital.Unearned Income
Income that doesn't create value but is the result of social programs or obligations such as pensions, old age payments, unemployment benefits, alimony and child support. In some cases, unearned income isn't taxed.Types
The following are common types of income.
Summary
Income can be one-time or recurring and includes anything you receive in a period of time that has cash-value.
Notes
In some cases, governments consider passive income such as interest and dividends as unearned.| Overview: Income | ||
Type | ||
Definition | Money, or some equivalent, that is received in a period of time such as a year or month. | |
Related Concepts | ||
