what is active income

active income is the income earned through active participation in a trade or business. It is the money earned from performing a service, selling a product, or any other form of active work. Active income can come from a variety of sources, including salaries, wages, tips, commissions, and bonuses.

Active income is usually considered to be the opposite of passive income, which is income earned from investments, rental properties, or other forms of income that do not require active involvement or ongoing effort. Active income is typically subject to regular income tax rates, while passive income may be subject to different tax rules and active income examples rates depending on the source of the income.

 active income examples

Here are some active income ideas

1. Salary or wages from employment
   
2. Tips earned from serving customers in a restaurant or other service industry
3. Commissions earned from sales, such as in real estate or insurance
4. Hourly wages for work done, such as in construction or manual labor
5. Income earned from running a small business or being self-employed
6. Consulting fees earned by providing professional advice or services
7. Bonuses earned for meeting or exceeding performance goals
8. Fees earned for freelance work, such as writing, graphic design, or programming
9. Income earned from teaching, coaching, or training others
10. Income earned from performing, such as in acting, music, or stand-up comedy.