In order for me to give you a definitive answer, I researched this following Turbo Tax post. Although this is an example of self-employment income, it does state that residual income is earned income, whether it be self-employment income or from an employer. The IRS looks to the origin of the payment to determine its taxability. The residual income you receive is of the same character as the income you received when you were in working.
Therefore, the fact that it is reported on a W2 makes it earned income.
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