unearned income

American  

noun

1. income received from property, as interest, dividends, or the like.

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unearned income British  

noun

1. income from property, investment, etc, comprising rent, interest, and dividends

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Example Sentences

The Social Security Administration considers free shelter to be unearned income, although he can avoid this reduction if he pays his fair share of household expenses.

From MarketWatch • Apr. 18, 2026

The Kiddie Tax can apply to unearned income for certain children under 24, making it partly taxed at the parents’ rate.

From The Wall Street Journal • Mar. 23, 2026

That means any earnings from a Trump account will be included in the child’s total unearned income and taxed for the year if withdrawn before he or she turns age 59 ½.

From Barron's • Dec. 23, 2025

That’s important because unearned income tends to represent a greater share of total income for the wealthy compared with the rank-and-file.

From Los Angeles Times • Jan. 7, 2025

Has it not already been taken not only in this Budget, but in its predecessor, in which the Prime Minister made the memorable distinction between earned and unearned income?

From Liberalism and the Social Problem by Churchill, Winston