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Level 1
December 7, 2019
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Subchapter S Earnings - active participant - Is this not considered earned Income for Child Care credit?

  • December 7, 2019
  • 2 replies
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Why does Subchapter S earnings not contribute to earnings for child tax Credit?

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Best answer by abctax55

"EARNED income" means subject to SE tax (in general).

K-1 income flowing from an S-Corp isn't.... sorta the reason ( or one of them...) for forming an S-Corp.

2 replies

abctax55
abctax55Answer
Level 15
December 7, 2019

"EARNED income" means subject to SE tax (in general).

K-1 income flowing from an S-Corp isn't.... sorta the reason ( or one of them...) for forming an S-Corp.

HumanKind... Be Both
Just-Lisa-Now-
Intuit Community Champion
December 7, 2019

They should have a W2 from the S-Corp if they are doing work for it...the W2 would have earned income.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
abctax55
Level 15
December 7, 2019
"should"..... :smiling_imp::smiling_imp:
HumanKind... Be Both