The IRS claims the following are earned income:
- Taxable income you earned as an employee, such as wages, salaries, commissions, and tips
- Profits from operating your business or farm
- Long-term disability pay, if received before the minimum retirement age****
- Union strike benefits
If you are not yet retirement age for your company your disability is a substitute for wage income and can be used to contribute to a traditional or roth IRA. If you are of retirement age for your company your disability benefits no longer count as wages and can not be used towards contributions to an IRA.
