Unearned Income -An individual's income derived from means other than the provision of personal efforts (Salaries), such as that derived as dividend, interest, or rent. Pensions and royalties, however, are not considered unearned income.
Examples of unearned income include interest from a saving account, bond interest, tips, alimony, and dividends from stock. As long as this income is "realized" then it is taxable.
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