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ddsantino
New Member

Is there a difference in how much taxes I pay if the income is wage income or retirement income?

What is the difference between wage income and retirement wades
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3 Replies

Is there a difference in how much taxes I pay if the income is wage income or retirement income?

No difference.  The earned income from wages and the taxable amount of retirement income is entered on a tax return as ordinary income.

Is there a difference in how much taxes I pay if the income is wage income or retirement 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.

Is there a difference in how much taxes I pay if the income is wage income or retirement income?

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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