This is the profit generated from the sale of real estate or stocks. It also comes from interest on savings, money market accounts, CDs, and dividends.
Mutual funds pay capital gains distributions to shareholders. You can also find this unearned income when you sell stocks, bonds, and other assets.
Companies pay shareholders dividends rather than reinvest the profits in the company. You can normally reinvest your dividends if you don't want to pay tax on it.
This is income from pensions, annuities, and distributions from your 401 (k) plan and IRA. Some forms of social security benefits are included in this category.
Both alimony and child support are considered unearned income but they're taxed differently.