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State tax filing
Pension distributions are not considered earned income, even though it was earned when you originally received the associated income, but only in part. The distributions from your pension plan area a combination of earnings on the contributions, which is clearly not earned income, and a return of the amount you contributed. Consequently, It may make sense to treat some of it as earned income, but that is not how the tax code works. I assume it has to do with the fact that tax on the income is deferred, so you already have one benefit so allowing you to treat a portion of the income as earned would be doubling up on benefits.
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‎February 10, 2025
10:59 AM