turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

4dam
Level 1

Which TurboTax product best for: married filing jointly + community property state + LLC with spouse

Curious if anyone can give guidance on which TurboTax product would have the necessary fields and forms to file taxes for this kind of situation:

  • Married filing jointly
  • In a community property state (CA)
  • My spouse and I are the sole 2 members of an LLC with 50/50 ownership/responsibility
  • We also both have W2 income and other deductions like charitable giving 

Because of the above, it's my understanding that our LLC is considered a disregarded entity and treated like a Single-member LLC (SMLLC). It's our first year filing taxes for the LLC so I'm not sure which TurboTax product could work for this kind of situation — which product would allow us to elect to treat our LLC as a SMLLC as a married couple? Is there a product that can handle the LLC expenses plus our W2 income? 

Thanks for the help! 

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
PatriciaV
Expert Alumni

Which TurboTax product best for: married filing jointly + community property state + LLC with spouse

Since you live in a community property state, you each file Schedule C on your joint return to report your respective shares of the business activity. Fortunately, your LLC doesn't need to file a separate business return.

 

If you prefer to work in a browser to enter your information, TurboTax Premium is the only option. You need this upgrade to enter business activity.

 

However, TurboTax for Desktop offers some advantages, like the ability to view the forms in your return as you work. Also, you can prepare as many returns as you wish and e-file up to five returns at no additional charge. Any version of TurboTax CD/Download installed on your personal computer has all the forms you need to file your return. The higher levels (like TurboTax Premier) have expanded interviews and specific On Demand Guidance in the program that you may find helpful.

 

Note that there are additional charges in all versions of TurboTax for preparing and filing a state income tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

3 Replies
PatriciaV
Expert Alumni

Which TurboTax product best for: married filing jointly + community property state + LLC with spouse

Since you live in a community property state, you each file Schedule C on your joint return to report your respective shares of the business activity. Fortunately, your LLC doesn't need to file a separate business return.

 

If you prefer to work in a browser to enter your information, TurboTax Premium is the only option. You need this upgrade to enter business activity.

 

However, TurboTax for Desktop offers some advantages, like the ability to view the forms in your return as you work. Also, you can prepare as many returns as you wish and e-file up to five returns at no additional charge. Any version of TurboTax CD/Download installed on your personal computer has all the forms you need to file your return. The higher levels (like TurboTax Premier) have expanded interviews and specific On Demand Guidance in the program that you may find helpful.

 

Note that there are additional charges in all versions of TurboTax for preparing and filing a state income tax return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
4dam
Level 1

Which TurboTax product best for: married filing jointly + community property state + LLC with spouse

That all makes sense! To triple confirm regarding the TurboTax Premium web version:
When you say "you each file Schedule C on your joint return," that is the section in TurboTax Premium titled "Self-employment income and expenses?"

 

The info we input in "Self-employment income and expenses?" will be used to populate the Schedule C forms?

PatriciaV
Expert Alumni

Which TurboTax product best for: married filing jointly + community property state + LLC with spouse

Yes, you are correct. Self-employment income and expenses are reported on Schedule C.

 

The easiest way to find Schedule C in TurboTax Online is to open your return and click the magnifying glass at the top right side of the TurboTax header. Enter "schedule c", hit Enter, then click on "jump to schedule c". This will take you directly to the start of this section where you can set up your business and enter your income & expenses.

 

Or go to the left column and choose Tools >> Tools >> Topic Search. Type in "schedule c", click the topic in the list, then click "GO".

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies