Is Annuity Considered Earned Income? 
If you are applying for Social Security , Supplemental Security Income -LRB- SSI -RRB- , or Social Security Disability Income -LRB- SSDI -RRB- , annuities are not considered earned income . You report annuity payments under the unearned income section of IRS form 1040 . That does not mean that your annuity may not be partially or fully taxed . 