Discussion:EIC and Subchapter S income

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Revision as of 01:31, 20 February 2008

Discussion Forum Index --> Basic Tax Questions --> EIC and Subchapter S income
Discussion Forum Index --> Tax Questions --> EIC and Subchapter S income

Vickytown (talk|edits) said:

20 February 2008
Client is active participant in subchapter s business. She was paid salary of $10,000 and has $4200 or ordinary income. I've read conflicting information for the treatment of the $4,200 in calculating the EIC. Since it is not subject to SE tax, do I have to claim it as passive income for the EIC, thus making her ineligible. Any help will be appreciated. (The Subchapter S is an LLC, having filed an election to be taxed as a Sub S.)
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