ELI5: Explain Like I'm 5

Earned income

Earned income is money that you get when you do something to earn it. Mom and Dad may give you money as an allowance but that isn't earned income because you didn't do anything to get it. To get earned income, you must work for it. For example, if you get a job or do babysitting or other chores around your house, you can earn income. That money you earn is your earned income.