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Unearned Income Definition

By , About.com Guide

Definition:

Unearned Income is the money your child earns from savings and investments. It includes interest and dividends. It does not include wages, salaries, and tips from a part-time job and net earnings from self employment income, which is considered earned income.

Examples:
Children must file taxes when unearned income is greater than $900 (for 2008).

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