Carl
Level 15

Business & farm

Please turn off the caps lock. It's hard on the eyes and in the online world is considered shouting.

You can't mix different tax forms together in the same program for numerous reasons I really don't want to get into here. (programming limitations being one of those reasons).

Basically, the 1040 tax return is used to file a tax return for a living, breathing human person.

The forms included in TurboTax Business are used for completing and filing a tax return for a non-living, non-breathing taxable entity. Therefore the 1040 is not included in that particular program for a reason.

 

A partnership and multi-member LLC is in and of itself considered a non-living entity. Even though it's a disregarded entity for tax purposes, the 1065 partnership return allows for the division of all income and expenses among the living members of that type of business organization. This division is reflected on the K-1 that each member of the organization gets. The K-1 is then entered on the personal tax return of the member that received it, and that's how their share of profit/loss is accounted for on the personal side.

 

Now when you get into other types of business entities such as a C-Corp or S-Corp, things get a bit more complicated since those are not considered disregarded entities, but separately taxable non-living non-breathing entities.