### Question
Can you define what earned income means?


### Answer
**Earned income** is defined as the following in *26 U.S.C. § 401*:

> the net earnings from self-employment (as defined in section 1402(a)), but such net earnings shall be determined—


(i) only with respect to a trade or business in which personal services of the taxpayer are a material income-producing factor,


(ii) without regard to paragraphs (4) and (5) of section 1402(c),


(iii) in the case of any individual who is treated as an employee under sections [3](#401_3_target) 3121(d)(3)(A), (C), or (D), without regard to paragraph (2) of section 1402(c),


(iv) without regard to items which are not included in gross income for purposes of this chapter, and the deductions properly allocable to or chargeable against such items,


(v) with regard to the deductions allowed by section 404 to the taxpayer, and


(vi) with regard to the deduction allowed to the taxpayer by section 164(f)

#### Citation:
  - *26 U.S.C. § 401*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter D-Deferred Compensation, Etc. > PART I-PENSION, PROFIT-SHARING, STOCK BONUS PLANS, ETC. > Subpart A-General Rule**

