Is my disability pension considered earned income?
Updated: 1/21/2013
Article ID: IAS10163
If you receive a disability pension and are under the minimum retirement age, taxable payments are considered earned income and are reported as wages (Form 1040, line 7). You may be eligible for the Earned Income Credit, to contribute to an IRA account or for other benefits and deductions that require earned income. If the pension is not taxable, it won’t count as earned income and won’t be on the tax return at all.