Knowledge Base

Frequently Asked Questions

Earned Income

Earned income is income that you had to work to earn, either working for someone else who pays you or working in a business you own and run. Use your earned income to figure your eligibility for certain tax benefits, such as the Earned Income Credit.

Earned income includes

wages, salaries, tips, and other taxable income

union strike benefits

long-term disability benefits received prior to minimum retirement age

net earnings from self-employment

gross income received as a statutory employee.

For reference, pay that is not considered earned income includes

pay received for work while an inmate in a penal institution

interest and dividends

retirement income

social security

unemployment benefits

alimony

child support