Is k1 income earned or unearned?

I am trying to claim a dependent care credit. I am a 100% owner of an S corp and my husband got a w2, but the turbotax program claims I do not have earned income.

Is k1 income earned or unearned?

The distributive share of an S-Corp is not considered earned income. The earned income arising from an S-Corp should have been passed as a W2 to the S-Corp owner.

Is k1 income earned or unearned?

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Is k1 income earned or unearned?

Depending on what the k-1 income, it can be either earned or unearned. You might need to check off a box somewhere in your turbotax program to make the s-corp income be earned, but then that should also subject it to self-employment tax for you.

Is k1 income earned or unearned?

It is unearned income in this case. S - corp income is really considered a dividend. In the future, pay yourself a salary, file payroll taxes and complete a w-2.