Do I file 2018 taxes as self-employed, employed, or both?

[freddyverde]

I have a full-time job and I just opened an LLC this October, I'm in a partnership with a friend. I'm not sure if I need to file taxes as self-employed and employed separately or if I need to file them together. If so, how can I do it?

[Texas Roger]

Who is filing the return for the partnership? It requires TurboTax Business and is totally separate from your personal tax return.

[Bsch4477 · Accepted solution]

I assume your full time job is as an employee and so you get a W-2.  Report that on your return as you usually do.  The income from the LLC generally comes to you reported on a K-1 which you then report on your same return as self employed income on Sch C.

[Critter]

Income passed thru on a Partnership K-1 goes on the Sch E page 2 NOT a Sch C.

[Bsch4477]

Thanks for the correction, Critter.

[freddyverde]

Critter, isn’t schedule E for passive income? Should I not complete a schedule C since I’m working for the income?
thanks,

[Bsch4477]

The K-1 will report the income in box 14 with a code A which makes it earned income.  You will have to pay self employment tax on that income.

[Critter]

Ok ... if you have an LLC separate from the partnership you mentioned then you will need to file a Sch C for the self employment.   But if you ONLY have the partnership then a form 1065 must be filed and K-1 forms produced for each partner.  If this is all new to you I highly recommend you seek professional assistance for at least the first 1065 so you get started correctly ... the penalties for getting it wrong are severe.

[freddyverde]

Got it, I think I’m going to file with turbo tax for business and get our K-1 forms from there. Thanks Critter

[TaxGuyBill]

I agree, go to a tax professional for the Partnership.  Doing it yourself often costs WAY more in tax and penalties than the cost of doing it correctly.