LLC filing for a Married Couple-Form 1065-What Turbo Tax Software Do I Need?

[Lucky33]

My spouse and I started a business (which happens to be a LLC). As such, we MUST file @form 1065  as required by the IRS. I cannot find any package that Turbo Tax offers that includes all forms needed for a married couple, filing jointly, who happens to be small business owners, with a LLC. From the research I've done, it seems as though I need Turbo Tax Home & Business (No Form 1065 but has the Schedule C for Small Business) in addition to Turbo Tax Business (Has form 1065 but DOESN'T include personal income tax preparation).  Why doesn't Turbo Tax offer a package that includes everything? I can't be the only person with this issue...

[dodgers90210]

Yeah, you need two packages.

[MinhT1]

If you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin), your husband-wife LLC is a disregarded entity and can be filed on a Schedule C within your personal tax return. You'll then only need TurboTax Self-Employed (Online) or TurboTax CD/Download.

In you live in another state, then you'll need TurboTax Business to file form 1065 for your LLC. 

[Lucky33]

Thanks for your reply. We live in Oregon which is not a community property state. It seems we are classified as a partnership by the IRS. For an LLC classified as a partnership, do we have to pay the Oregon minimum excise tax of $150 even if we did not make any profit?

[Lucky33]

Another question:

As I am now having to use 2 different forms of Software (Turbo Tax Business and Turbo Tax Home & Business) and I want to ensure the IRS receives all information together, it is better for me to mail all documents or will the IRS sync everything together if submitted through each version of software?

[AnnetteB6]

Based on the fact that your LLC does business in Oregon, you would be required to file Form OR-20 and pay the minimum excise tax.  See the following link for instructions:  2019 Form OR-20 Instructions

You can safely electronically file each of your returns (business return and personal return) through the respective versions of TurboTax.  The IRS will be able to sync the information together as needed to process your returns.  

@Lucky33

[Lucky33]

I used the Turbo Tax Business to get my Federal Taxes set. Being in our first year, we had a profit loss. When I initially entered the info for the Federal Return, I had no K-1. I entered my OR State Taxes and it created a K-1. Do I now need to go back into my Federal and enter that information?

[DavidD66]

You have to complete your Form 1065 for your business before you can finish your personal return.  When you have finished your business return (Form 1065) you will have two Forms K-1 - one for each of you.  You need to enter both of the K-1s in your personal return.  If there are any differences between federal and state (such as depreciation) you may also need to make entries on your personal state return to adjust federal amounts.

[Lucky33]

Now if I'm just working on my Business Federal Return (not personal return), do I also enter this newly state generated K-1 on the Business Federal Return; or do I only enter the K-1 on my personal taxes?

[DavidD66]

You only enter the K-1s from you business on your personal return.

[Lucky33]

Thanks to everyone who is contributing!

Is this correct:

For the Business section of Turbo Tax Home and Business, I do not fill in any business info/income/expenses since this is a LLC Partnership and I will be filing the Business through the Turbo Tax Business Federal Taxes?

[DavidS127]

Yes, that is correct.  Your LLC partnership income will be reported on your personal tax return (Home and Business) via the Schedule K-1 entries for you and your spouse.  You do not file a separate "self-employment income/Schedule C" in your TurboTax Home and Business for that income.

[Lucky33]

If Box 1 on my K-1 shows a negative $ amount, do I still need to pay self-employment tax?

[Lucky33]

Also Box 14 is blank

[DianeC958]

No, you do not need to pay Self-Employment tax when your company shows a loss.

Box 14 on your K-1 should be blank since you have a loss.  When you show a profit in the company usually the number is Box 14 is the same number that shows in Box 1

@Lucky33