unearned income
nounUK /ʌnˈɜːnd ˈɪnkʌm/
US /ʌnˈɝːnd ˈɪnkʌm/
Money you get without working for it, like a gift or money your savings make.
The interest from her bank account is unearned income.
RELATED WORDS
OTHER MEANINGS
2. In accounting, money a business receives before it has actually earned it by delivering goods or services.
The company recorded the deposit as unearned income until the order shipped.
3. Money from investments such as stocks, bonds, or property rather than from a job.
His unearned income from dividends was taxed at a different rate.
4. In tax rules, income like gifts, inheritances, or prizes that comes without doing work.
The prize money counted as unearned income on the form.