Earned Income Income derived from active participation in a trade or business, including wages, salary, tips, commissions and bonuses. This is the opposite of unearned income. Investopedia Says: Earned income includes any income that a person or company receives for work they have done. If your boss gives you an advance on your next check, this would be considered unearned income because you haven't yet done anything to earn it. Related Terms: Active Income Earned Income Credit Employee Stock Purchase Plan - ESPP Passive Income Tip Income Unearned Income |