Where do I indicate that I am a LLC in Home & Business? The program never asked.

[debi642]

The program doesn't prompt for LLC. It never has in past years, either. Where is this located in the program?

[Critter]

Ok ... is this a single member LLC ?   Multi member LLC ?   Did you make the S-corp election ?  

[rjs · Accepted solution]

If you have a single-member LLC it is disregarded for income tax purposes. Since it's disregarded, you do not indicate anywhere in your tax return that it is an LLC. That's why TurboTax doesn't ask. You just file your business as a sole proprietorship, which is probably what you have done in past years. Just continue doing that.

If you have a multi-member LLC, or if your LLC has filed Form 8832 to elect to be treated as a C corporation or Form 2553 to elect to be treated as an S corporation for tax purposes, the LLC has to file its own tax return, separate from your personal tax return. You cannot use TurboTax Home & Business to file the tax return for the LLC in these situations. You have to use TurboTax Business, which is different from Home & Business.

[TaxGuyBill]

Having a Single Member LLC does affect things for a few States.  However, in those states that it affects anything, it would ask you that in the State interview.

[debi642]

I'm confused. I have read several publications that indicate there is a 20% deduction (with minimum salary requirements on QBI) for pass-through income (i.e. LLC) that is titled a 199A deduction. The deduction is taken on the individual's personal 1040 filing, not a business filing. That is what I was referencing and wanted to know how I do that on my 1040.

[rjs]

You never answered the questions about whether your LLC is single-member or multi-member, and whether it has elected to be treated as a C corporation or S corporation for tax purposes.

If you have a single-member LLC that has not elected to treated as a corporation, you report the business on Schedule C in your personal Form 1040 tax return. On your federal tax return you do not identify it as an LLC. The LLC is disregarded for federal income tax purposes. The QBI deduction applies to any Schedule C business, whether or not it is an LLC. In the business income interview (probably near the end) TurboTax will ask you some questions to determine whether your business qualifies for the deduction.

At the time that you posted your original question, on November 14, the preliminary version of TurboTax had just been released, and it did not yet include the QBI deduction. The QBI deduction is in TurboTax now. Make sure your TurboTax software is up-to-date.

[debi642]

Thanks to all of you for your help. I see the deduction. BTW-I'm a single member and kept forgetting to reply with that.

[Critter]

The new 20% QBI deduction is available to Sch C filers and when the program is fully updated sometime late January at the earliest ... you will see the deduction happen automatically. 

The new section 199A deduction propagates from the QBI Deduction Summary to the 1040 Worksheet to Form 1040 line 9.

What is the new 20% QBI Deduction
https://ttlc.intuit.com/questions/4499030-what-is-this-new-20-business-deduction

[Ted Turner]

I just bought home and business and found that it will not work with my multimember LLC - need to resolve this fast!

[tagteam]

@Ted Turner You need TurboTax Business (link below) to prepare an income tax return for a multi-member LLC (Form 1065). 

TurboTax Business can only prepare returns for entities, not personal income tax returns, and there is no Online nor Mac version; the program must be installed and run in a Windows environment.

https://turbotax.intuit.com/small-business-taxes/

[Carl]

TurboTax Business (different from Home & Business) is used to prepare a tax return for a non-living non-breathing separately taxable entity, such as a partnership, multi-member LLC, S-Corp, C-Corp, Estate, or Trust. TurboTax Business can not be used to prepare a personal 1040 tax return of any type, because the program does not include the personal 1040 form required for a personal return.

If filing a business return (1065, 1120 or 1120-S) be aware that the drop dead due date to the IRS is March 15th, and "NOT" Apr 15th like it is for a personal 1040 tax return. The late filing penalty for a business return is $200 per month, per owner. So if you have a multi-member LLC with two owners and you file the 1065 return on March 16th, the late filing penalty is $400. So don't be late.

[tagteam]

Note that regarding due dates for business returns, an extension can be filed if more time is needed.

See https://www.irs.gov/instructions/i7004#idm140379022604448

[Ted Turner]

I bought the wrong product - home and business, I need just business. Who do I talk to to get credit?

[DoninGA]

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@Ted Turner wrote:

I bought the wrong product - home and business, I need just business. Who do I talk to to get credit?

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If you are going to also be filing a personal tax return, Form 1040, you will still need the personal edition of TurboTax that you already purchased,  The TurboTax Business Edition does not support personal tax returns, Form 1040.

Otherwise - Go to this TurboTax website to request a refund for the software purchased from TurboTax - https://support.turbotax.intuit.com/forms/refund-request.jsp

Go to this website for the TurboTax Business Edition - https://turbotax.intuit.com/small-business-taxes/

The Business Edition can only be installed on a Windows based personal computer, not on a Mac or online