Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-06-2016, 04:52 PM
Junior Member
 
Join Date: Sep 2015
Posts: 10
Does K-1 Partnership income qualifies for EIC

We have small business which me and my wife material participate the day to day activity ( we work fully time in this business).
Since our income (on K-1) is not classified as passive do we qualify for the EIC?



Thanks in advance


Last edited by jaarso81 : 01-06-2016 at 05:04 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-08-2016, 03:20 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by jaarso81 View Post
We have small business which me and my wife material participate the day to day activity ( we work fully time in this business).
Since our income (on K-1) is not classified as passive do we qualify for the EIC?



Thanks in advance
it isearned income but it depends; Earned Income is income that is characterized by active actions designed to earn money.Depending on what the k-1 income, it can be either earned or unearned . For example, S Corp sch K-1 of 1120S reports only "Investment" Income and thus it is NOT and Earned Income.however,
income from partnerships of 1965, S corporations of 1120S, 1041 of trusts, and estates can only count as earned income if they are considered ?non-passive?.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Domestic Partnership-1 income only jackhblum Sole-Proprietorship 2 11-17-2014 12:13 PM
Domestic Partnership-1 income only jackhblum For 2014 0 11-17-2014 12:17 AM
Which taxpayers qualifies for an online installment agreement with California State? TaxGuru California 0 07-14-2009 12:58 PM
What Qualifies for Federal Student Loan Consolidation? TaxGuru Education Planning 0 06-11-2009 11:19 PM
How do I report income from my partnership? terryhall Income 1 01-26-2007 11:06 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.