unearned
/ʌnˈɜːrnd/ · un·earned
adjective
- Not obtained or achieved through one's own effort, work, or merit. She received an unearned promotion after the manager left the company.
- Describing income, benefits, or privileges that arise without personal labor or contribution. The tax code treats unearned income, such as dividends, differently from wages.
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Did you know? In U.S. tax law, "unearned income" such as interest and dividends is taxed at different rates than wages, a distinction that dates back to the Revenue Act of 1913.