Income can be classified three types like ;'
1)Active income: This is the type of income that most of us are familiar with. Earned income, such as that from wages, tips, and business participation are considered active.
2)Portfolio income: This is income from your investments, including capital gains, interest, and dividends, and it’s possible to offset the income from your portfolio with losses.
3)Passive income: Passive income can be defined as money that you do not actively work to produce.