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No difference. The earned income from wages and the taxable amount of retirement income is entered on a tax return as ordinary income.
No. They are both taxed as ordinary income. Unless you have a basis in the retirement. Like if you contributed any after tax money to the retirement plan. And if you took a distribution from a IRA or 401K there might a 10% Early Withdrawal Penalty if you were under 59 1/2.
Well, retirement income does not qualify for the Federal EIC or other earned income based credits. And some states may have a retirement income exclusion on the State return.
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