Who Earns Pass-through Income?

According to the Congressional Research Service, over 82% of net pass-through income from partnerships, S corporations, and sole proprietorships is earned by taxpayers with an adjusted gross income (AGI) over $100,000, although these taxpayers account for just 23% of returns filed. Most S corporation and partnership income is the active type exempt from the additional 3.8% Medicare tax on net investment income.


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