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Deductions & credits
If you receive a W-2, wage income, that should qualify. But if the business is an 1120S and you don't take a salary, the ordinary income distribution on the 1120S K-1 does not qualify as earned income. Same for a partnership unless the income from the partnership is in the boxes for SE income.
The problem might be that unless the spouse is either a student or receiving earned income, you wouldn't qualify for the child care credit. It was meant to help out people who are working for earned income and/or students. That was the original intent.
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
March 15, 2020
7:07 AM