Partnership Income, Distributions, Self-Employment

Free IRS Enrolled Agent SEE Part 2 (Businesses) lesson in Business Entities and Considerations. 7 min read, ~993 words.

Partnership files Form 1065 by March 15; no entity-level tax; each partner gets a Schedule K-1. General partners' distributive share plus guaranteed payments = SE earnings (15.3% up to \$176,100 in 2025; 2.9% Medicare thereafter). Limited partners exempt under §1402(a)(13); only guaranteed payments for services trigger SE tax. Cash distributions...

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