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thejoes2
New Member

Is income from unemployment or profit sharing plan considered income in an earned income school district?

For State of Ohio school taxes
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1 Best answer

Accepted Solutions
DawnC
Expert Alumni

Is income from unemployment or profit sharing plan considered income in an earned income school district?

No.  Unemployment is unearned income and Profit Sharing distributions are retirement income, so no, neither is earned income.  

 

Worker's comp, unemployment, and pensions don't count as earned income.  

 

The IRS defines earned income as:

 

  • Taxable income you earned as an employee, such as wages, salaries, commissions, and tips
  • Profits from operating your business or farm
  • Long-term disability pay, if received before the minimum retirement age
  • Union strike benefits
  • nontaxable combat pay 
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2 Replies
DawnC
Expert Alumni

Is income from unemployment or profit sharing plan considered income in an earned income school district?

No.  Unemployment is unearned income and Profit Sharing distributions are retirement income, so no, neither is earned income.  

 

Worker's comp, unemployment, and pensions don't count as earned income.  

 

The IRS defines earned income as:

 

  • Taxable income you earned as an employee, such as wages, salaries, commissions, and tips
  • Profits from operating your business or farm
  • Long-term disability pay, if received before the minimum retirement age
  • Union strike benefits
  • nontaxable combat pay 
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
thejoes2
New Member

Is income from unemployment or profit sharing plan considered income in an earned income school district?

Thank you very much!

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