The discussion on this thread is about a Schedule K-1 from a partnership. keez, you instead received a Schedule K-1 from an S corp. Income on a Schedule K-1 from an S corp is not compensation that will support an IRA contribution.
If you were an active participant in the S corp you should have received a Form W-2 from the S corp reporting your compensation because you are an employee of the S corp, not self employed (except for the purpose of a self-employed health insurance deduction). You should not have received a Form 1099-MISC from the S corp unless, perhaps, is was for service as an independent contractor prior to becoming a shareholder.
Income properly reported on Form 1099-MISC for services legitimately performed as an independent contractor or sole proprietor are reportable on Schedule C (entirely separate from your income as a shareholder in the S corp) and the amount of profit on Schedule C reduced by the deductible portion of self-employment taxes and any deductible self-employed retirement contributions is compensation that will support an IRA contribution.