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As you may have derived from the title of this article, not all income is created equal. In fact, the Internal Revenue Service categorizes income into three broad types, Earned Income, Passive Income, and Portfolio Income. While passive and portfolio are income is generated via investments, earned income is either employment (W2) or self-‐‑employment (1099) income. The principals and methods governing the three are substantially different, and most importantly, the rules relative to taxation are different as well. [ 1,492 more word ]
Earned Income vs Passive Income vs Portfolio Income: A Comparison As you may have derived from the title of this article, not all income is created equal. In fact, the Internal Revenue Service categorizes income into three broad types, Earned Income, Passive Inco…
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