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I'm wondering if an annuity is considered as earned income. Can anyone clarify this for me?
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Annuities are generally not considered as earned income. Earned income typically refers to income that is earned through active participation in a job or business. It includes wages, salaries, tips, and self-employment income. Annuities, on the other hand, are a form of investment that provides a regular stream of income over a specified period of time. They are typically funded with after-tax dollars and are not considered as earned income for tax purposes.

It's important to note that there are different types of annuities, such as immediate annuities and deferred annuities, and the tax treatment may vary depending on the specific type of annuity and the circumstances. It's always a good idea to consult with a tax professional or financial advisor for personalized advice regarding your specific situation.
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