3 ms·

please define unearned income. afaik - other types of income ARE taxed ie. capital gains, etc. EDIT: Asking a question to be more specific is being downvoted l

please define unearned income. afaik - other types of income ARE taxed ie. capital gains, etc. EDIT: Asking a question to be more specific is being downvoted leads me to believe there is a party that hates these particular questions being asked, and is antithetical to the idea of community dialogue and shared ideas. I really think the whole internet forum thing has much to be desired.

zz865 5y ago
Yes they are income taxed but dont pay social security or medicare taxes. If you earn $100 wages you pay 6.2 percent SS taxes and 1.45% medicare (employer pays more than this too). If you earn $100 dividends you dont pay either.
valleyer 5y ago
No, Social Security and Medicare (collectively, FICA) taxes are not levied on capital gains.