Is Income on Schedule K-1 From an S Corporation Considered Self-Employment Income?
Software reference · Written guide Content date 1 min read
Ordinary income reported to an individual shareholder on Schedule K-1 from an S corporation is not considered self-employment income. Such income is investment income. It is thus not subject to self-employment tax, nor is it included in the calculation of earned income for the credits that are based on earned income.
Additional Information:
IRS: S Corporation Compensation and Medical Insurance Issues