Non-passive income is taxed at a different rate than passive income. You might read this CPA's explanation (it's clearer than most) - <a rel="nofollow" target="_blank" href="
https://www.bgrcpas.com/news/2017/11/an-overview-of-passive-vs-non-passive-income-in-real-estate/">h...>
The presence of the NPA suggests that perhaps you indicated that you worked more than 750 hours (note: full time is about 2,200 hours per year) in the Schedule E business, which changes the activity from passive to nonpassive.
