Business & farm

Which state are you in?

Under IRS rules, generally, if you were a joint venture and not a registered LLC, then you would file as TurboTax is recommending with 2 Schedule C's.  However, since you are an LLC, you will still need to file the 1065 and then enter the K-1 on your returns.  

In order to file 2 separate Schedule C's instead of the 1065, all of the following would need to apply:

• "the only members of the joint venture are a married couple who file a joint tax return,
• both spouses materially participate in the trade or business,
• both spouses elect to have the provision apply,
• the business is co-owned by both spouses and
• isn't held in the name of a state law entity such as a partnership or limited liability company (LLC)." Married couples in business

To get rid of the Schedule C's and the errors you are getting you can delete the Schedule C's. 

If you are using TurboTax Online, then you can go back and delete the Schedule C's and do not enter any business information.  To do this select Tax Tools>>Tools>>Delete a Form, then delete next to both your Schedule C's

If you are using the desktop version, you will need to go to forms mode in the upper right hand corner and then click on the Schedule C on the left for both of you then click Delete in the lower left corner.

You will need to use TurboTax Business NOT Home and Business to file the 1065 which will generate the K-1 to enter on your personal return. 

If you are in a community property state and want to change from the 1065 to Schedule C, you would need to file a 1065 to close the business. Then file the Schedule C. 

(Edited 3/7/23 @9:19AM PST) @usfacs