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LSDefine
Simple English definitions for legal terms
other income
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A quick definition of other income:
Other income refers to money or payment received from sources other than employment, business, or investments. This can include royalties, gifts, and other forms of periodic payments. Other types of income include accrued income, which is money earned but not yet received, and disposable income, which is income that can be spent or invested after taxes and other primary obligations have been paid. Other income can also include dividend income, which is income resulting from a dividend distribution and subject to tax, and investment income, which is income earned from investments rather than labor.A more thorough explanation:
Definition: Other income refers to money or payment received from sources other than employment, business, investments, royalties, gifts, and the like. It includes income that is earned but not yet received, income that is retained in an account, and income that is not subject to income tax.
- Accrued income: Money earned but not yet received, such as a paycheck that has been earned but not yet paid.
- Passive income: Income derived from a business, rental, or other income-producing activity that the earner does not directly participate in or has no immediate control over, such as rental income or dividends.
- Exempt income: Income that is not subject to income tax, such as certain types of government benefits or income earned by a nonprofit organization.
These examples illustrate the different types of income that fall under the category of other income. Accrued income is money that has been earned but not yet received, while passive income is income that is earned without active participation. Exempt income is income that is not subject to income tax, such as certain types of government benefits or income earned by a nonprofit organization.