3 ms·

Is this facetious? Because it's a little funny to expect the IRS to be so literal. In my experience, either it's "earned" in that it's been paid directly to you

Is this facetious? Because it's a little funny to expect the IRS to be so literal. In my experience, either it's "earned" in that it's been paid directly to you or it's indirect income (e.g. dividends you were paid on an investment you aren't directly working on or appreciation you haven't collected on) that are still going to be taxed on in one way or another.

codecamper 12y ago
They are incredibly literal in a few cases. Such as: "Professional fees. If you are engaged in a professional occupation (such as a doctor or lawyer), all fees received in the performance of these services are earned income." (great.. special rules for lawyers) But they make up for it by loving artists: "Income of an artist. Income you receive from the sale of paintings you created is earned income." I wish they sit down and analyze software and make some hard & fast rules -- it's the computer age and we are being treated like "writers" or "professionals" or whatnot