Do I have to pay social security and medicare on my K1 income?

Question

is there any limit on income for exemption of social security tax?

Answer 1

That depends on the type of income and what the K1 is from (partnership, S-Corp, trust).

S-Corp - No

Partnership - Yes (generally)

Answer 2

To expand a little on Wayne's answer, if you look at the K-1, it will tell you what type of income it is reporting.  If it is income from active participation in a business as a partner or shareholder, it is subject to FICA and Medicare.  For 2008 the maximum amount of income subject to FICA is $102,000.  There is no limit on Medicare taxation.