I have been retired from the federal government for 10 years. Although I wanted to work, my service-connected disabilities were such that I could not hold a job, but my SC rating did not satisfy the IU eligibility requirements. My SC rating has recently been increased and I now meet the eligibility requirements. I am requesting clarification to complete VA Form 21-8940. What constitutes “earned income”? My annual income is composed of a federal pension, social security and VA disability payments. Is all or a portion of my annual income considered earned income?