Discussion:INCOME FROM S CORP FOR EIC PURPOSE

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

(Difference between revisions)
Jump to: navigation, search
Revision as of 15:49, 21 June 2006
JR1 (Talk | contribs)
(The only active)
← Previous diff		 Revision as of 15:55, 21 June 2006
Warren (Talk | contribs)
(I agree that 100)
Next diff →
Line 7: Line 7:
{{ForumReplyPost|UserID=JR1|Date=21 June 2006|Text=The only active income for EIC would be a salary. Without it, it's just like interest or dividends passing thru. And I agree with Sandy, as usual, 100 hours is no biggie, no salary desired or necessary there. }} {{ForumReplyPost|UserID=JR1|Date=21 June 2006|Text=The only active income for EIC would be a salary. Without it, it's just like interest or dividends passing thru. And I agree with Sandy, as usual, 100 hours is no biggie, no salary desired or necessary there. }}
 +
 +{{ForumReplyPost|UserID=Warren|Date=21 June 2006|Text=I agree that 100 hours is not a huge deal one way or the other. But I do think that it does justify some salary or hourly wage of at least the federal minimum wage. Are there other shareholders? Do they get paid?}}

Revision as of 15:55, 21 June 2006

Discussion Forum Index --> Tax Questions --> INCOME FROM S CORP FOR EIC PURPOSE

ANIL (talk|edits) said:

21 June 2006
IF A PERSONE HAS AN INCOME IN EXCESS OF $2700 FROM AN S CORP, WILL HE BE ELIGIBLE FOR EARNED INCOME CREDIT? THIS PERSON PUTS MORE THAN 100 HOURS IN HIS S CORP ACTIVITIES. IS THIS INCOME PASSIVE OR NON-PASSIVE?

Sandysea (talk|edits) said:

21 June 2006
This sounds like non passive activity; is his investment of time and money at risk? Income from an S corp is not earned income, but if the person is putting in services of their s-corp, why have they not taken any salary for their services which IS earned income...just a thought:)

JR1 (talk|edits) said:

21 June 2006
The only active income for EIC would be a salary. Without it, it's just like interest or dividends passing thru. And I agree with Sandy, as usual, 100 hours is no biggie, no salary desired or necessary there.

Warren (talk|edits) said:

21 June 2006
I agree that 100 hours is not a huge deal one way or the other. But I do think that it does justify some salary or hourly wage of at least the federal minimum wage. Are there other shareholders? Do they get paid?
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:INCOME_FROM_S_CORP_FOR_EIC_PURPOSE"