In my case, I am the only employee and have to pay myself a fair compensation, but my revenue is variable each year, sometimes $5k sometimes $10k, so I take W2 wages based on the average of the past five years. But, the amount over that, that flows to my 1040 IS actually earned by me because there is no one else.
But, in the Help section, at the bottom (see attachment) it says not to include income for partnerships for which you don't supply services. Implied here is that it would include partnerships for which I DO supply services, which is my case.
