should I file my LLC business in my personal taxes- Married filing jointly

[JamieBeery]

My LLC is at a loss for 2025 (I brought in under 5K and expenses were over 5K) , I cashed out my 401K ( total under 100K), had unemployment benefits for 6 months, and received severance pay for 6 months, we rent an apartment. Should I file this all together in my normal/personal taxes? I am married, filing jointly, spouce works part time and receives monthly Social Security wages. Also, do I need a form from dissolving my 401k or do I just put the total amount and then take the 20% that was held back for taxes?

[MelindaS1]

I'm assuming you normally file your LLC tax return on Form 1065, unfortunately there is no option for you to report the partnership income and expenses on your personal tax return; every partnership with any items of income or expense must file a 1065.

If compliance burden is becoming too much for what the business brings in for profit, maybe you could check the box 'final' at the top of Form 1065 to inform the IRS that you will not be sending in any more returns and the partnership will be ceasing operations; just an idea to consider, not advice. 

If you withdrew your 401(k) before reaching the age of 59 1/2, it may trigger the filing of Form 5329 to report distributions subject to the 10% additional tax, but that depends on the details of your Form 1099-R; in any case, as long as you enter the information into TurboTax, the program will take care of the necessary forms and schedules for you. 

[rjs]

MelindaS1 is assuming that your LLC has more than one member and is treated as a partnership for income tax purposes. That would require filing a separate Form 1065 partnership tax return for the LLC. But you didn't say that it's a multi-member LLC.

If, on the other hand, it's a single-member LLC, meaning that you are the only member, the LLC is disregarded for income tax purposes. You report it as business income or self-employment income on your joint personal Form 1040 tax return. The business income and expenses will be reported on Schedule C included in your tax return.

You need a Form 1099-R from the 401(K). If you didn't get one, contact the administrator of the 401(k) plan and ask for it. The 1099-R will show the amount that you took out and the amount of tax that was withheld. The 1099-R will also have other information. You enter the information from the 1099-R into TurboTax. You cannot file your tax return without the 1099-R. You can't just enter amounts from your own records.