Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Instructions for Form 1040
Request for Taxpayer Identification Number (TIN) and Certification
Request for Transcript of Tax Return

 

Employee's Withholding Allowance Certificate
Employer's Quarterly Federal Tax Return
Employers engaged in a trade or business who pay compensation
Installment Agreement Request

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

What is Earned Income?

Earned income includes all the taxable income and wages you get from working or from certain disability payments.

There are two ways to get earned income:

You work for someone who pays you

 or

You own or run a business or farm

Taxable earned income includes:

  • Wages, salaries, tips, and other taxable employee pay;
  • Union strike benefits;
  • Long-term disability benefits received prior to minimum retirement age;
  • Net earnings from self-employment if: 

Nontaxable Combat Pay election. You can elect to have your nontaxable combat pay included in earned income for EITC. The amount of your nontaxable combat pay should be shown on your Form W-2, in box 12, with code Q. Electing to include nontaxable combat pay in earned income may increase or decrease your EITC. See Publication 3. Armed Forces Tax Guide, for more information.

Examples of Income that are Not Earned Income:

  • Pay received for work while an inmate in a penal institution
  • Interest and dividends
  • Retirement income
  • Social security
  • Unemployment benefits
  • Alimony
  • Child support.