Is Pension Income Considered Earned Income?

Is Pension Income Considered Earned Income?

According to H&R Block, pension income is not considered earned income because it is not money a person receives for recent labor they perform; however, the person will still have to pay taxes on pension income and may be eligible for the earned income credit if they have additional qualifying earned income. A person usually receives a pension after retiring from a company, and it may be paid at all once or on an installment basis.

According to the Minnesota state government, some examples of earned income include wages (including any tips and commissions received), self-employment income, royalties, jury duty pay, severance and sick pay, living allowances and blood sales. Along with pensions, some other types of unearned income include child support, supplemental security income, gifts, workers' compensation, unemployment insurance and public assistance payments.