Legal Definitions - other income

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 toincome 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.