As outlined by the IRS, limited partners do not pay self-employment tax on their distributive share of partnership income, but they do pay self-employment tax on guaranteed payments. General partners, however, are subject to self-employment tax on their distributive shares of income. W-2s vs....
Share For partnerships and S corporations with tax years that begin in 2021, the IRS has announced penalty relief in Notice 2021-39 for certain failures related to the filing of new Schedule K-2 (Partners’ Distributive Share Items—International) and Schedule K-3 (Partner’s Share of Income...