David Olive Posted April 15, 2021 Report Share Posted April 15, 2021 Client owns a 50% membership interest in an LLC being taxed as a partnership. LLC had a loss on the year, however, the client received taxable income in the form of guaranteed payments. This amount qualified as "earned income" and can be contributed to an IRA, correct? Link to comment Share on other sites More sharing options...
Lou S. Posted April 15, 2021 Report Share Posted April 15, 2021 Is he reporting it as taxable income on his 1040 (or whatever schedule attached to 1040 it is this year I think Schedule 1 but don't quote me)? Is he paying Self Employment Taxes on it? Was it for services rendered to the Partnership? If the answer to all 3 questions is yes, then you can use it as earned income for an IRA contribution. Luke Bailey 1 Link to comment Share on other sites More sharing options...
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