There are basically two types of income: earned income and unearned income.

• Earned income is wages or salary you receive from a job. You may be paid weekly, every other week, bimonthly, or monthly.
  
• Unearned income is money you receive that does not come from a job. It may come from benefits or gifts, such as:
  • Supplemental Security Income (SSI),
  • Social Security Disability Insurance (SSDI),
  • Workers’ compensation,
  • Veteran benefits,
  • SNAP (food stamps),
  • Gifts from family or friends, or
  • Interest earned on savings.
    

You might even have a source of unearned income that’s not on this list.

If you have earned income, you already know that you don’t get to keep all that you make because you have to pay taxes!