Why is annual leave pay not earned income?

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When I use leave during the year, the pay I received is taxed as earned income. Why would the lump sum payment for earned leave made when I retire not be considered earned income?

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Posted by (Questions: 1, Answers: 0)
Asked on March 8, 2017 2:24 pm
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Thank you for following up on this. I don’t know where my head was when I answered the original question. It sure wasn’t on the Internal Revenue Code! Yes, your lump sum annual leave payment is considered earned income.

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Posted by (Questions: 0, Answers: 65)
Answered on March 8, 2017 4:03 pm
<p>The lump sum annual leave payment could be put into a Roth IRA for that year &#8211; up to the amount of the payment. Yes?</p>
( at May 5, 2018 7:04 pm)
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