if i use turbo tax business for my LLC can i use the free version to file my joint taxes (1040) with my husband?

[lieslcaldwel13]

Please help!!

My husband and I started a business in 2022 and we don't have the funds to pay for a CPA. We have a few questions, sorry if I don't get the lingo right, it's all MIGHTY confusing. Why don't they teach this stuff in High School?

Question 1: Can we just use Self Employed Turbo Tax version to file as a partnership LLC and file our joint personal taxes?

Question 2: If we need to use the Business Turbo Tax version to file for our LLC, can we then use the free version of Turbo Tax to fill out our joint 1040?

Thank you for your help!! 

[Anonymous_ · Accepted solution]

In which state do you reside?

If it is a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin), you can use Self-Employed and each file on a separate Schedule C (i.e., you will split the income and expenses according to your interests).

If you are not in a community property state, you will most likely need to file a Form 1065 and issue a K-1 to each of you. 

Concerning the latter, you are probably going to need help and should seek local assistance from someone knowledgeable.

[xmasbaby0]

If this is your first year with your business, trying to do your own tax return might be a way more expensive mistake than paying a tax pro.  Use a local paid professional, get educated about how to handle your taxes, and maybe try TT next year when you know more.

[GeorgeM777]

As a follow-up to @Anonymous_ and @xmasbaby0, if both you and your spouse are owners of the LLC, then for tax purposes the IRS will consider your LLC as a partnership, and thus, you will file a partnership return, Form 1065.   Owners of an LLC are referred to as members.  If there is only one member and the other spouse is an employee, then that is a different situation for tax purposes.  Follow-up with additional information if necessary, but do not include any personally identifiable information in your post.

For the partnership return, you will need to use TurboTax Business.  In TurboTax Business you can also prepare the Schedule K-1s for you and your spouse.  When you prepare your individual or joint return, if you have K-1s to enter, you will likely be required to upgrade to TurboTax Premier (on-line version).  

@lieslcaldwel13

[lieslcaldwel13]

Thank you for your help!

We live in Arizona, so we will both fill out our Schedule C using Self Employed Turbo Tax.

Thanks again!