a) what does it take, exactly, for a worker to earn a wage? b) how is interest income earned? c) how is ‘capital gain’ income earned? d) how is ‘inheritance’ income earned, exactly? e) how are social security benefits earned? f) how are private sector pensions and government employee pensions earned? g) how are unemployment insurance benefits earned?

a) The money, or compensation, you earn in exchange for work. Some common ways employers pay wages are hourly, salary, and commission — or some combination of these ways. An hourly amount voted into law by the U.S. Congress.

)Interest income is generated by savings accounts, CDs, and other investments that pay some form of interest. ... Investment banks and other financial institutions generate interest income from securities and a variety of investments.

c) Capital gains are generally included in taxable income, but in most cases, are taxed at a lower rate. A capital gain is realized when a capital asset is sold or exchanged at a price higher than its basis. Basis is an asset's purchase price, plus commissions and the cost of improvements less depreciation.

d) Received an inheritance of cash, investments, or property? ... Inheritances are not considered income for federal tax purposes, whether you inherit cash, investments or property. However, any subsequent earnings on the inherited assets are taxable, unless it comes from a tax-free source.

e)You qualify for Social Security benefits by earning Social Security credits when you work in a job and pay Social Security taxes. We base Social Security credits on the amount of your earnings. ... In 2020, you receive one credit for each $1,410 of earnings, up to the maximum of four credits per year.

)While public pensions are provided to individuals working in state and local governments, private pensions are typically made available through companies..

g)The program is funded by taxes on employers, including state taxes and the Federal Unemployment Tax Act (FUTA), which is 6 percent of the first $7,000 of each employee's wages. States have extensive flexibility in determining benefits.

a a car

~courtney

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