Question

How does earned income, like wages, differ from unearned income, like interest or rental

income? How would you pay taxes on these different types of income?

Answer 1

Your tax liability is based on your overall income, so it's important to understand the different types of income and how the IRS treats them. Earned income and unearned income each include diverse forms of payments and have unique tax implications.

Explanation: Hope this helps <3