2024 Tax year - Multi-Member LLC

[2020CC]

I am working on the 2024 personal taxes for my wife and I and we own an LLC together. I have already completed the 1065 for our business and have input the the K-1 info for both of us in our personal taxes. I am trying to understand the tax summary. I understand the taxes on our business income, which is based off the K-1's. What is confusing is we are are also being charged taxes based off our taxable income, which shows as tentative taxes on the tax summary. This appears to be another tax being calculated off our taxable income. Can this be explained to me as I feel that we are being taxed twice? Shouldn't we only owe our business taxes?

[ThomasM125]

If you both materially participate in the LLC, then you may be subject to self-employment tax on that income. This tax gets paid into the social security administration as it is used as your retirement contribution you would pay if you were salaried employed. This may be what you are referring to as your business tax. It is in addition to your income tax, and they both get paid in with your personal Form 1040 filing.

It may benefit you to look at your Form 1040 where you can see your income, deductions and taxes separately stated. 

To view your form 1040 and schedule 1 to 3:

1. Choose Tax Tools from your left menu bar in TurboTax Online
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done