“Earned Income” is a term used by the IRS to describe money that you made through “sweat and toil” as they like to say. What that means for the rest of us, is that you had to work for the money, usually through working a job and receiving a W-2, or being self-employed and receiving cash or a 1099-NEC. Some common examples of self-employment are gig work (Uber, Lyft, Doordash), child care, landscaping, hair styling, etc.
“Unearned Income” is money that you made without working such as unemployment, interest from a bank account, the sale of stocks or bonds, lottery or gambling winnings.
