@bww25
I do not believe it will qualify as earned income for purposes of the Earned Income Tax Credit.
The IRS defines earned income as:
- Taxable income you earned as an employee, such as wages, salaries, commissions, and tips,
- Profits from operating your business or farm,
- Long-term disability pay if received before the minimum retirement age,
- Union strike benefits.
I suspect the K-1 will report on Schedule E. Use Schedule E (Form 1040 or 1040-SR) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs). Schedule E is for “supplemental income and loss,” and not earned income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
