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TeachMeFinance.com - explain unearned income unearned income -- (1) income that has been collected in advance of the performance of a contract. (2) income that is derived from investments, such as dividends, property rentals, and other sources not involving the individual's direct personal efforts. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.