It has to be earned income. Other taxable income is not earned.
Taxable earned income includes:
- Wages, salaries, tips, and other taxable employee compensation;
- Union strike benefits;
- Disability retirement benefits received prior to minimum retirement age;
- Net earnings from self-employment if:
- You own or operate a business or a farm or
- You are a minister or member of a religious order
- You are a statutory employee and have income
Earned Income
