We’ll define both and show you the differences, including which types of income qualify as active and which are passive. Both incomes are required throughout your lifetime, but combining the power of ...

Passive income is generated through investments or work completed in the past that continues to yield returns without the need for continuous manual input. In the world of finance, it can stem from a ...

Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.

With inflation and interest rates rising, many people are looking for ways to generate additional income these days—and finding reliable sources of passive income, which require less effort than most ...

Taxation of passive income follows specific principles that distinguish it from active income. Generally, passive income is subject to tax, but the rules and rates can differ markedly from those ...

IRC section 469(a)(1) defines a passive activity as one involving the conduct of any trade or business in which the taxpayer does not materially participate. In section 469(a)(2), the statute ...

Several abusive tax shelters in the 1970s and 1980s caused Congress to enact rules to prevent taxpayers from deducting losses when a taxpayer doesn’t materially participate in the activity. These ...

Matt Richardson is the senior managing editor for the Managing Your Money section for CBSNews.com. He writes and edits content about personal finance ranging from savings to investing to insurance.

Non-passive income, also known as active or earned income, refers to the money that you earn through your active efforts, typically by trading your time and expertise for compensation. This is the ...