Question

What is the main difference in the way that "earned income" and "capital gains (or portfolio income)" are acquired?

Answer 1

Earned income is money earned though your job.
Capital gains is money earned though investment(s).

Answer 2

Earned income is money you received for a job performed and capital gains are profits from investments.

Step-by-step explanation:

-Earned income refers to salary, bonuses, commissions, tips that you receive because of a job that you have done from an employer or your business.

-Capital gains refer to money that you receive because of the sale of a capital asset like stocks or real estate.