Which of the following is considered earned income for general partners?

Earned income for general partners primarily refers to the income generated from active participation in a partnership's business activities. Schedule K-1 income is the correct answer because it reflects the partner's share of income, deductions, and credits from the partnership, which is considered earned income.

This type of income arises from the partner's ongoing involvement in the business operations, thereby satisfying the criteria for earned income, which is compensation for services rendered or active engagement in business activities. Since general partners typically take on management roles and contribute to the running of the partnership, the income reflected in the Schedule K-1 aligns with earned income.

In contrast, salary from a corporation does not pertain directly to the role of a general partner, as it would indicate a relationship with a corporate entity rather than a partnership. Dividend income is generally classified as unearned income since it originates from shareholdings rather than active participation in a business. Similarly, capital gains from asset sales are also considered unearned income, as they stem from investments and asset transactions rather than from direct work or services performed within a business context. Thus, Schedule K-1 income stands out as the type of income that classifies as earned for general partners due to their active role in the partnership.