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Level 1
posted Jan 27, 2020 11:44:46 AM

I have a job (w-2) and also owned a single member LLC which I have cancelled within 12 months of formation. What version of TT is best for me?

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1 Best answer
Expert Alumni
Jan 27, 2020 12:08:06 PM

I depends whether your single-member LLC had any income or expenses in the 2 months of existence.

 

If your LLC did not have any income or expenses in 2019, then there is need to report it in your tax return. You can then file your tax return using the Free edition of TurboTax (or the Deluxe or Premier depending on whether you have any other income or deductions).

 

If your LLC had income only and no expenses, you can report the income on Schedule C of your personal return using TurboTax Deluxe.

 

If your LLC had expenses to claim, you'll have to use TurboTax Self-Employed.

 

Please see this comparison between the different versions of TurboTax online.

5 Replies
Expert Alumni
Jan 27, 2020 12:08:06 PM

I depends whether your single-member LLC had any income or expenses in the 2 months of existence.

 

If your LLC did not have any income or expenses in 2019, then there is need to report it in your tax return. You can then file your tax return using the Free edition of TurboTax (or the Deluxe or Premier depending on whether you have any other income or deductions).

 

If your LLC had income only and no expenses, you can report the income on Schedule C of your personal return using TurboTax Deluxe.

 

If your LLC had expenses to claim, you'll have to use TurboTax Self-Employed.

 

Please see this comparison between the different versions of TurboTax online.

Level 1
Jan 27, 2020 4:49:13 PM

I had some expenses nothing major but typical things, website hosting, software subscriptions etc. but no income. Is there any benefit to reporting those expenses from the LLC if there was no income?

 

When I start with individual tax return, I think I used deluxe before, would I get all the prompts to ensure I address any of the tax questions that the IRS would be interested in including Federal and California? I was not self-employed, I still have W-2 so I don't know if I need the desktop version and the self employed one seems like it would be for someone that did not have W-2. Sorry, I know you already told me which one to use but want to make sure. 

Expert Alumni
Jan 27, 2020 4:58:41 PM

If you have expenses to claim with no income, you will have a loss for your LLC. This loss can be used to offset the income from your W-2.

 

You'll need to use TurboTax Self-Employed to report the expenses on Schedule C.

Level 1
Jan 30, 2020 11:06:33 AM

You have been very helpful, thank you. Last question, promise, can you file form 568 using Turbo Tax Self Employed? 

Expert Alumni
Jan 30, 2020 12:55:26 PM

Please see this TurboTax answer which addresses your question.

 

TurboTax Self-Employed online is equivalent to TurboTax Home & Business.