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I am wondering if disability insurance is considered as earned income. Can disability insurance be counted as income for tax purposes?
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Disability insurance is generally not considered as 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, on the other hand, is designed to provide income replacement in the event of a disability that prevents an individual from working. It is considered as a form of insurance benefit rather than earned income.

However, it's important to note that tax laws can vary by jurisdiction, so it's always a good idea to consult with a tax professional or refer to the specific tax regulations in your country or state to determine how disability insurance is treated for tax purposes in your specific situation.
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