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I'm wondering if disability insurance is considered earned income. Can disability insurance payments be counted as income for tax purposes?
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Disability insurance payments are generally not considered earned income for tax purposes. Earned income typically refers to income that is earned through active participation in a trade or business, such as wages, salaries, tips, and self-employment income. Disability insurance payments, on the other hand, are considered to be replacement income for lost wages due to a disability. They are usually classified as unearned income, similar to other forms of insurance benefits.

It's important to note that tax laws can vary by country and jurisdiction, so it's always a good idea to consult with a tax professional or refer to the specific tax regulations in your area to get accurate and up-to-date information regarding the treatment of disability insurance payments for tax purposes.
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