2134.What is earned income?
Earned income is:
Wages paid or constructively paid (as defined in §1302) for services you perform as an employee;
Military pay and allowances except for on-base and privatized military housing and combat-related pay (i.e., hostile fire and imminent danger pay);
Net earnings from self-employment estimated for a current year on the basis of volume of business, past experience, etc.;
Payments for participating in a sheltered workshop or work activities center program;
Sickness or temporary disability payments received within the first six months of stopping work; and
Royalties you earned in connection with any publication of your work and any honoraria received for your services.
Earned income may be paid in cash or in-kind. If it is in-kind, its full current market value is the amount used to determine your countable income.
Last Revised: Apr. 12, 2010