Which type of income is generated from your savings account that is added to your taxable earned income?

The income generated from a savings account is typically classified as unearned income. This type of income arises not from employment or active participation in a business, but rather from investments or savings, such as interest earned on a savings account. Unearned income is relevant in tax calculations because it is included in your total taxable income, along with earned income, which comes from wages or salaries.

When you earn interest on the money in your savings account, this interest is considered unearned income because it is not directly tied to work performed. For tax purposes, it is essential to report this income along with your earned income, as it contributes to the overall taxable amount that may determine your tax liability.

Other choices do not fit the context of income generated from a savings account. Common stock refers to ownership in a company but does not specifically relate to the interest from a savings account. State income tax is a taxation category rather than a type of income, and Social Security benefits are government-provided income, which also does not pertain to interest earned from savings.