Show ME the $$$
This type of income comes from wages, salaries, or tips you earn by working.
What is earned income?
True or False: Generally, the more education you complete, the higher your income potential.
Money a company pays you for owning its stock.
What are dividends?
Money from leasing out an apartment or office building.
What is rental income?
True or False: Lottery winnings and gambling prizes count as income.
What is True?
Profits you keep after business expenses are paid are called this.
What is business income or profit?
The money and time spent on education is often compared to the money you earn later. This is called your _______.
What is ROI - Return on Investment?
Money you earn when you let a bank or borrower use your money.
What is interest income?
An author earns money every time someone buys their book.
What are royalties?
Income BEFORE taxes and deductions
What is Gross Income?
Money you receive from investing in company stocks is called this.
Answer: What are dividends?
A person who trains to become an electrician instead of going to a 4-year college is pursuing this type of education.
What is trade/technical training?
Selling stock or property for more than you bought it for creates this type of income.
What is a capital gain?
A YouTuber earns ad revenue whenever people view their videos. This is a modern example of this type of income.
Passive Income
Income AFTER taxes and deductions
Net Income
Transfer Payments / Government Benefits – Income from social programs.
Transfer Payments / Government Benefits – Income
Example: Social Security, unemployment, or disability benefits.
This kind of education beyond high school often leads to higher wages but also higher debt.
What is college or university education?
A hairstylist who works for herself earns this type of income.
What is self-employment income? (earned income)
A Youtuber gets paid every time someone clicks on a link or purchases a linked product
Affiliate Income
Money or value received by an individual or entity in exchange for labor, goods, services, or through investments.
Income
An author gets paid every time someone buys their book. This is called:
Answer: What are royalties?
Total compensation includes healthcare, retirement, bonuses, and paid time off.
What is Job Benefits & Perks?
True or False: Gifts from family and friends are considered taxable income.
What is False? (generally gifts are not taxable to the recipient, though there are limits for the giver)
A YouTuber earns money from sponsored brand deals, not just ads. This is still considered what kind of income?
What is earned income (self-employment / business)?
True or false? Inheritance is treated as income
False
Inheritance is not considered ordinary income and is not taxed like ordinary income is. Income from the inherited assets ARE taxed.