We have the same problem as the original poster and my husband's income IS being reported on a 1065 as subject to self-employment tax. You said: "If this were a Sch K-1 from a 1065, and the K-1 indicated the earnings were subject to self-employment tax, then that would be considered earned income." Yet, Turbotax is not recognizing this as earned income. (We confirmed this by instead adding the income as self-employed income and then the tax credit shows up. However, that obviously then double-counts the income as a K-1 and Self-Employed income.)
