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Profit, employment and pension income / earned income. Earned income consists of income chargeable under the Income Tax (Earnings and Pensions) Act 2003, such as pay, private and occupational pensions, retirement annuities, state retirement pensions and taxable social security income.
Earned income is defined by the United States Internal Revenue Code as income received through personal effort, with the following as the main sources: 1  Wages, salaries, tips, commissions, and other taxable employee pay.