Earned income does not include unemployment compensation @Shaiyla123.
Earned income includes all of the following types of income.
- Wages, salaries, tips, and other taxable employee pay. Employee pay is earned income only if it is taxable. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, isn't earned income. But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter.
- Net earnings from self-employment.
- Gross income received as a statutory employee
See Publication 596, Earned Income Credit
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