My LLC received a K1 and I am using Home & Business software

[raj27]

My LLC received a K1 and I am using Home & Business software but don't find a place where I can input this K1 for the LLC company. Can you please guide. Appreciate it. 

[JamesG1]

To report an IRS Schedule K-1 in TurboTax Desktop Home and Business, follow these steps.

• Select Personal across the top of the screen.
• Select Personal Income across the top of the screen.
• Select I'll choose what I work on.
• Scroll down to Business Investment and Estate/Trust Income.
• Select Start to the right of Schedule K-1.
• At the screen Did you receive any Schedules K-1, select Yes.

[raj27]

No, But the problem is the K1 is not for me...it is for my LLC and in personal section, you don't find an option to choose my LLC name as a receiver. This is where I get confused.

[JamesG1]

Are you needing to prepare a Federal tax return for an S corporation, a partnership, or an LLC?

These Federal tax returns will generate a Schedule K-1 with you (and, perhaps, others) as the recipient of the K-1.

This TurboTax website explains the Assisted Business and Full Service Business tax return options.

@raj27 

[raj27]

Thank you for your explanation.

No, I don't need to prepare an S-Corp tax return. I am doing my personal taxes, and I opened an LLC last year. I invested in a different company, for which the LLC received a K1. Now, to do my personal taxes, I purchased the Home & Business version, thinking that I have to file taxes for my LLC as well. However, there is no income or activity in my LLC other than receiving a K1, which I need to report on my personal returns.

My question is: Does the K1 received by the LLC have any other place to report it, compared to if I had received a K1 from an S-Corp? I mean, I can find for both LLCs and SCorp on the same page.

So, In general, does the K1 received by the LLC apply to me personally or to the LLC?

[PatriciaV]

It depends.

If you have not taken the S-Corp election for your LLC, the IRS considers you and the company to be one taxpayer. In this case, you would enter Schedule K-1 as Investment Income.

Note: The IRS requires Schedule K-1 for a single-member LLC to be issued in the name and SSN of the owner, not the LLC itself. You may need to request a revised K-1 if this is not true for the K-1 you received.

The easiest way to find this section of TurboTax is to use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "k-1", hit Enter, and click on "jump to k-1" to go directly to beginning of this topic.

Or go to Tax Tools >> Tools >> Topic Search. Type in "k-1", then click the topic in the list to go directly to the start of this section.

Follow the prompts to enter the information from Schedule K-1.

If, however, you have elected to be taxed as a corporation (S-Corp), your LLC must file a separate business tax return (Form 1120-S) to report the income from Schedule K-1 and any business expenses. You may prepare this business tax return using TurboTax Business, a CD/Download product that is installed on your own computer.