Wife and I own a small home business - a general partnership. We filed as a sole proprietorship with one sked C instead of partnership and 1065. Do we start all over?

[MinhT · Accepted solution]

If you lived in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), your husband-wife partnership is a disregarded entity and you can report income and expenses of the partnership on Schedule C of your joint tax return.

If you live in another state, you need to file a partnership tax return (form 1065).

To file form 1065, you'll need to use TurboTax Business which is a CD/Download on a Windows computer (not compatible with Mac):

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

[bryan-nyc]

Thanks. We already mistakenly filed online as sole proprietorship. If we use the turbotax business do we need to re-enter all figures and start from scratch? How can we amend and file 1065 without starting all over?

[MinhT]

Unfortunately, you have to re-enter everything in TurboTax Business as the tax forms are different.
If you have already filed your personal joint tax return, you'll need to amend it to delete the Schedule C and to add the 2 Schedules K-1 which you'll get from form 1065 for the partnership. There should be no change in tax on your joint return but this is the right way to proceed.