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Why is pension income taxable but not eligible for the EIC?
Usually, to have earned income you must have received the funds in exchange for labor, like wages and self-employment income. A pension is a payment for past services performed by the employee. So, it isn’t considered earned income.
You should report the income on your W-2 instead of Form 1099-R if both of these apply:
Minimum retirement age is the earliest age you could’ve received a pension or annuity if you didn’t have the disability. In this case, you might be eligible for the Earned Income Credit (EIC).