Earned income

Definition of Earned income

Income ( e.g. wages, salaries, or fees) derived from labor, professional service, or entrepreneurship as opposed to income derived from invested capital ( e.g. rents, dividends, interest). The distinction, however, for tax purposes has lost much of its original importance. See also Earnings; Income.

That's the definition of Earned income in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.