Does everyone, 4 members, need to purchase Turbotax Business to File Taxes (Form 1065)?

[Vocstra]

Hello everyone. Thank you for taking the time to read my post and helping me out.

I have an LLC with 3 other members (Total of 4). We are in the business of purchasing and leasing residential homes. Anyway, I purchased Turbotax Business and filed those taxes. When I completed the taxes, I notice it created a Schedule K-1 for each member. Though I already created a Schedule K-1 for each member prior and provided it to them.

I read that doing Form 1065 is informational only and the Schedule K-1 form it will be used by each partner to report income, deductibles, and so forth on their personal taxes as a pass trough. Here are a few questions.

1. Does each member have to purchase Turbotax Business or any other program to file Form 1065?

2. When I completed Turbotax business, it offered to do the state taxes as well, which I paid the $50 for and did it. If each member doesn't have to purchase Turbotax Business, does each other member have to file separate state tax for the LLC?

3. Since I did Form 1065 & the state tax through Turbotax business for the LLC and sent out Schedule K-1 to all the members, can they just use that form with their personal taxes and not have to worry about Form 1065?

Once again, thank you for your time and help.

[VolvoGirl]

No.  Only one person needs the Business program to file the 1065 return.   Business prepares the Schedule K-1 to give to each member.  They enter the K-1 into their personal returns.  How did you already create the K-1 without using the Business program and filling out the 1065 return?

They don’t have to worry about the 1065.  On their personal return……

To enter a K-1 go to

Federal Taxes Tab or Personal (Home & Business version)

Wages and Income

Scroll down to S-corps, Partnerships, and Trusts or to Business items

Schedules K-1, Q - Click the Start or Update button

Be sure to pick the right kind of K-1. There are 3 kinds, 1041, 1065 & 1120S

[Vocstra]

VolvoGirl,

Thank you for your time and help. In the beginning I was confused, but once I started doing it, I started to realize maybe everyone didn’t need to get the software. I came on to ask and double check.

You asked how I created the Schedule K-1 (Form 1065) without TurboTax Business. Research, old school paperwork, and using great accounting records from QuickBooks and Microsoft Excel records. LOL!!! I guess also doing family members taxes since the 90s when it was on paper helped as well. I’m telling my age. LOL!!! 

Anyway, thank you once again for your help, time, and clearing that up.