Working Families Tax Credit

What kind of income is not earned income?

Unearned income is personal income that is gained from sources unrelated to employment. The following are examples of sources that are not considered earned income:

  • Nontaxable employee pay.
  • Dependent care benefits.
  • Adoption benefits.
  • Basic housing allowance.

Disability insurance payment (paid premiums).

  • Interest.
  • Dividends.
  • Pensions.
  • Annuities.
  • Social security.
  • Railroad retirement benefits.
  • Alimony.
  • Child support.
  • Welfare benefits.
  • Workers’ compensation benefits.
  • Unemployment compensation.
  • Nontaxable foster care payments.
  • Veterans’ benefits.
  • VA rehabilitation payments.
  • Inmate income.