My spouse started a partnership LLC in 2016 but it will be a loss this year. I have read that the LLC should file separately and a K1 will be issued to for us to use in our personal return. I am wondering though about our personal money we used investing in the business start up and expenses.
Your personal investment will have no direct impact on your individual federal income tax return this year.
You are correct that the LLC, treated as a partnership, will need to file an information return, Form 1065, and issue Form K-1 to each partner. The information from the K-1 will, in turn, be entered into you personal tax return, to correctly pass through items of profit and loss, and other tax items. The correct product for preparing and filing Form 1065 and generating the Forms K-1 would be TurboTax Business (Windows Only).
Your personal investment should be recorded as a capital contribution to the LLC, while entering the LLCs information into TurboTax Business. It is important to keep the partners' capital accounts up-to-date, as the capital accounts have a role in limiting the manner in which distributions are taxed and the degree to which losses can be recognized by the partners.