I just read the original posters reply - You could be correct in that case. That should be different from my issue. I am guessing it is how the union payment is defined.
I was looking at how the software was working not at the actual issue. It could be that if people are blindly relying on the software, they could be reporting Unearned Income as Earned Income and as you stated, paying extra taxes.
Unearned income is an IRS term for income that is not obtained by participating in a business or trade (e.g., salaries and bonuses, wages, commissions and tips). It typically includes interest, dividends, pensions, social security, unemployment benefits, alimony and child support.
