From which of the following flow-through entities is the ordinary income (K-1) considered self-employment income?

A) S corporations
B) Estates
C) Trusts
D) Partnerships

Self-employment Income

Income generated from conducting business as an independent contractor, freelancer, or business owner, rather than as an employee.

Ordinary Income

Income earned from standard operations, including wages, salaries, tips, and interest, subject to regular taxation rates.

S Corporations

A type of corporation that meets specific Internal Revenue Code requirements, allowing it to pass income directly to shareholders and avoid double taxation.