Question

Ella’s disability pension is reported as wages and considered earned income for the purposes of the earned income tax credit. (A) True(B) False

Answer 1

The correct answer is letter "A": True.

Step-by-step explanation:

In the case Ella has not reached the required age for retirement, her pension for disability would be considered as earned income by the Internal Revenue Service (IRS). It also depends on the type of disability pension she has. Social Security Disability Insurance, Supplemental Security Income (SSI), and military disability pensions are not considered earned income for tax return purposes.