IsabellaG
Expert Alumni

Business & farm

Your distributive share from a Sub-S Corporation is not considered earned income. That's because it's considered to be investment income. If you did work for the Sub-S and received compensation, you should have been paid wages, and it should be reported on a W-2.

Partnership K-1 income for business income,  that is subject to Self Employment tax, is considered to be earned income.

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