True or false: Income earned from salaries, wages, and commissions is termed earned income.

The statement that income earned from salaries, wages, and commissions is termed earned income is indeed true. Earned income refers to any income derived from active participation in work, which includes salaries, wages, commissions, and bonuses. This term encompasses income that individuals earn through their employment or self-employment, emphasizing the aspect of actively exchanging time or services for payments.

Therefore, stating that the answer is false does not align with the definition of earned income established in financial terms. Understanding that earned income includes both typical employment earnings as well as self-employment income helps clarify the scope of what qualifies as earned income in various contexts. It is important to recognize how this classification is utilized in taxation and financial planning discussions as well.