Types of Income — Practice Questions

Types of IncomeCareer and Income — Salary, hourly, freelance, and passive income compared.Income comes in different forms, and how you earn it affects taxes, stability, and how much it can grow.

Earned income: wages and salary from working.

Passive income: rent, dividends, or royalties that need little ongoing effort.

Portfolio income: interest, dividends, and gains from investments.

W-2 vs 1099: A W-2 employee has taxes withheld. A 1099 contractor gets full pay and must handle their own taxes, including self-employment tax.Multiple income streams spread risk, and income from assets can scale beyond the hours you personally work.11 practice questions with explanations. Free, and no account is needed to start.