Understanding Different Types of Income

• John is a software engineer who earns a monthly salary. This is his primary source of income, paid by his employer for his work.

• What kind of income is he making?

• Interest Income

• Capital Gains

• Wages & Salaries

• Royalties

Maria runs a bakery and earns income from the sale of cakes, pastries, and other baked goods. Her income comes from the profits of her business.

What kind of income is she making?

• Wages & Salaries

• Royalties

• Capital Gains

• Business income

Alex owns an apartment building and receives monthly rental payments from his tenants. This rental income is generated from his property investment.

What kind of income is he making?

• Interest Income

• Rental Income

• Dividend Income

• Interest Income

Sarah has a savings account that earns interest. The bank pays her a small percentage of interest on her deposited money annually.

What kind of income is she making?

• Business Income

• Capital Gains

• Interest Income

• Dividend Income

Michael owns shares in a company that pays dividends. He receives a portion of the company's profits periodically as dividend payments.

What kind of income is he making?

• Dividend Income

• Capital Gains

• Royalties

• Business Income

• Emma bought stocks at a lower price and sold them at a higher price. The profit she makes from this transaction is her capital gain.

What kind of income is she making?

• Business Income

• Dividend Income

• Royalites

• Capital Gains

Robert wrote a book and earns royalties from each copy sold. He receives payments from the publisher based on the sales of his book.

What kind of income is he making?

• Wages & Salaries

• Royalties

• Capital Gains

• Business Income

Linda receives a monthly pension after retiring from her job. She also withdraws funds from her 401(k) retirement plan.

What kind of income is she making?

• Social Security Benefits

• Alimony and Child Supprot

• Pension and Retirement Income

• Dividend Income

David, a retired individual, receives monthly Social Security checks from the government based on his previous contributions during his working years.

What kind of income is he making?

• Social Security Benefits

• Alimony and Child Support

• Pension and Retirement Income

• Dividend Income

Karen receives alimony and child support payments from her ex-spouse, which help her manage living expenses for herself and her children.

What kind of income is she making?

• Dividend Income

• Pension & Retirement Income

• Social Security Benefits

• Alimony and Child Support