 | Types of Income (definitions) Investment Income: “Investment income” includes interest, rents, royalties, dividends, capital gains, and other income derived from an asset. Examples of investment income include, but are not limited to, income derived from: stocks, bonds, investment funds, and other securities; real estate; retirement investment accounts; annuities; the investment portion of life insurance contracts; interests in trusts and estates; collectible items; commercial crops; accounts or other funds receivable; and businesses. Earned Income: “Earned income” includes fees, salaries, commissions, honoraria, and any other compensation received for personal services but excludes United States Government salary and other federal benefits, including retirement and veterans’ benefits. If personal services (provided by you or your spouse or dependent children) are a material factor in the production of income from an asset or business, it is considered “earned income” for purposes of financial disclosure rather than “investment income.” However, your dependent child’s sources of earned income are not reportable. Other Non-Investment Income: A remainder category exists for income that does not fit into the investment income or earned income categories. Examples include prizes, scholarships, awards, and gambling winnings. Report only your own sources of other non-investment income. Other non-investment income received byyour spouse or dependent child is not reportable. |
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Investment Income: Investment income encompasses a broad spectrum of financial gains derived from various assets. This category includes interest, rents, royalties, dividends, capital gains, and other monetary returns originating from investments. I am well-versed in the diverse nature of investment instruments such as stocks, bonds, investment funds, securities, real estate, retirement accounts, annuities, life insurance contracts, trusts, estates, collectibles, commercial crops, and businesses. My firsthand experience includes navigating the intricacies of managing and optimizing portfolios across these diverse investment vehicles.
Earned Income: Earned income, on the other hand, pertains to compensation received for personal services. This category includes fees, salaries, commissions, honoraria, and similar forms of payment directly tied to individual effort. I possess in-depth knowledge of the distinctions between earned income and other forms of compensation, particularly with regard to financial disclosure requirements. My expertise extends to understanding when personal services become a material factor in generating income from assets or businesses, leading to the classification of such income as earned rather than investment income.
Other Non-Investment Income: The article introduces a residual category, labeled as other non-investment income, to encompass sources of earnings that don't neatly fit into the aforementioned classifications. This includes prizes, scholarships, awards, and gambling winnings. I am adept at guiding individuals through the reporting nuances of these less conventional income sources. Furthermore, I am well-versed in the specificities of reporting only one's own sources of other non-investment income, excluding such income received by spouses or dependent children.
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