How do I include partnership LLC income in Turbo Tax Home & Business?

[smelkote1]

My spouse had a partnership LLC business last year and she filed her form 1065 on Schedule K-1 separately. I am now trying to complete our joint personal tax return using Turbo Tax Home & Business but cannot figure out where exactly I should include her business income. When I go through the business income and expenses section it asks me to provide information that was already reported on the 1065. Note that my spouse also has a W-2 from her employer in addition to the partnership LLC business. Are we using the wrong software?

[AnnetteB6]

You are using the correct software to file a personal tax return.

When she filed her Form 1065 for the partnership, part of that return was the Form K-1s that were generated for each partner.  The partnership itself does not pay tax.  The return is more of an informational return for the IRS.  Each K-1 that was generated along with Form 1065 should be entered into the personal tax return for each member of the partnership.  

So, the K-1 for your spouse must be entered as part of your joint personal tax return.  That will take care of including her income and deductions related to the partnership.

You would enter her W-2 along with yours, just as you would enter any W-2 income.

Once you have her partnership K-1 in hand, use the following steps to go to the section of your return to enter the information:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner) 
• This opens a box where you can type in “K-1” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to K-1”
• Click on the blue “Jump to K-1” link and enter your information

[smelkote1]

Thank you for the reply. I am using Turboxtax Home & Business that I downloaded. I am assuming the way to get to Schedule K-1 is the same in this version of the software as online. 

[dmertz]

None of this gets entered in the Business section of TurboTax.  The Business section is for sole proprietors, not for partnerships.  If neither of you have a sole-proprietorship, the Premier version of TurboTax would have been sufficient to prepare your individual tax return.  (Actually, you can use any of the CD/download versions.)

[AnnetteB6]

Yes, in general, using the search box in either version of TurboTax will give you the 'jump to' link to go directly to the K-1 section.  The downloaded version differences are listed in parentheses to guide you to the right place on the screen.

Or, for TurboTax Home and Business, you will find the K-1 section by going to  Personal > Personal Income > Business Investment and Estate/Trust Income > Schedule K-1.

@smelkote1