Salaries, wages, fees, and commissions.
In the U.S. tax code, income from an active business as opposed to passive investment income.
Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses. See also "Non-passive Income."
For purposes of the passive loss rules, income must be divided into three categories: active income, passive income, and portfolio income. Active income is income for which the taxpayer performs services. Examples are wages, salaries, tips, bonuses, a nd business and partnership income in which the taxpayer materially participates in the business or partnership. See Passive Income and Portfolio Income.
Income generated by a trade or business activity in which the taxpayer materially participates. Also see “Business,” “Income,” “Material participation,” and “Passive income.
Active income, such as wages, tips and profits from your business that you materially participate in, and portfolio income, such as interest and dividends. Generally, you cannot offset active income with passive losses. See also "Non-passive Income."
Income resulting from the active conduct of trade or business. Français: Revenu actif Español: Ingreso activo