Unearned income cannot be used to contribute to a qualified retirement account such as an IRA.141516 The Bottom Line Earned income is any compensation that you receive from a job or self-employment. It can include wages, tips, salaries, commissions, or bonuses. It is different from unearned...
and self-employment income, whether in the form of money, services, or property. The definition of earned income is not the same for all income tax provisions. For example, alimony is treated as earned income only for purposes of determining how much an individual can contribute to an IRA....