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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.
Unearned income usually derives from passive income, such as unemployment compensation, child support, pensions, Social Security benefits, alimony or interest or dividend income. Because pension income is not considered earned income, it does not qualify you for any IRS credits that list earned income as a prerequisite. Considerations Step