Types of Income

Types of Income. A. Income is either earned or unearned. B. Different rules apply to each type of income. C. Some examples of the types of income are listed below: 1. Earned income consists of the following types of payments: a) Wages; b) Net earnings from self-employment (NESE); c) Payments for services performed in a sheltered workshop or work activities center; d) Royalties earned by an individual in connection with any publication of his work and any honoraria received for services rendered. 2. Unearned income consists of the following types of payments: a) Annuities, pensions, and other periodic payments; b) Alimony and support payments; c) Dividends, Interest and royalties (except for royalties mentioned above); d) Rents; e) Benefits received as the result of another’s death to the extent that the total amount exceeds expenses of the deceased last illness and burial paid by the beneficiary; f) Prizes and awards; g) In-kind support and maintenance.