Is Social Security disability income classified as earned income?

Social Security disability income is not classified as earned income. This type of income is considered unearned income because it is provided by the government to individuals who are unable to work due to a disability, rather than being earned through employment or self-employment activities.

Earned income typically includes wages, salaries, tips, and other compensation derived from working. Since Social Security disability benefits do not originate from work performed, they fall into the category of unearned income. This distinction is important for tax purposes and for understanding eligibility for certain programs that have income thresholds.

Other options, such as the idea that Social Security disability income is earned income (which incorrectly classifies it), or suggesting it is partially earned, do not align with the established classifications used in tax law. Similarly, the assertion that it might depend on state regulations is misleading, as the definition of earned versus unearned income is a federal classification.