qbteachmt
Level 15
12-07-2019
10:25 AM
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"Active participant" = Employee = Wages = qualify for the Earned Income Credit, because W2 Wages = earned income. The amount on the K-1 is the amount passed through as taxable to the shareholder, not their Earned amount. Their Earned amount as part of payroll for the corporation was part of Expenses for the corporation.
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Don't yell at us; we're volunteers
Don't yell at us; we're volunteers