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5DKJohnsons
New Member

Which Turbo Tax product should I purchase? I usually use Turbo Tax Premier but this year I have started an LLC and am an Independent Contractor. I didn't make any money in 2020 but I had business expenses. Do I include this on my personal tax return?

 
3 Replies
ErnieS0
Expert Alumni

Which Turbo Tax product should I purchase? I usually use Turbo Tax Premier but this year I have started an LLC and am an Independent Contractor. I didn't make any money in 2020 but I had business expenses. Do I include this on my personal tax return?

It depends. If you are the only member of your LLC and did not file Form 8832 with the IRS to be taxed as a corporation or partnership, then you can put your LLC on your regular income tax return.

 

You will need TurboTax Self-Employed Online or Home & Business CD/Desktop. Premier does not handle Independent Contractors. When you are filling out your business information, the business name will be the full name of your LLC as listed on your paperwork. TurboTax will also ask if you have an Employer Identification Number (EIN). If your LLC has one, enter the number.

 

If you elected to be taxed as a S-Corporation or Partnership, then you will need TurboTax Business to prepare the corporate or partnership return. This return will include a Schedule K-1 form, which shows your portion of income, deductions and credits from your LLC. You can plug a Schedule K-1 into your personal return with Premier.

apnoravong
Returning Member

Which Turbo Tax product should I purchase? I usually use Turbo Tax Premier but this year I have started an LLC and am an Independent Contractor. I didn't make any money in 2020 but I had business expenses. Do I include this on my personal tax return?

So are you saying if we are a LLC with partners we need the turbatax business 202 desktop?  

BillM223
Expert Alumni

Which Turbo Tax product should I purchase? I usually use Turbo Tax Premier but this year I have started an LLC and am an Independent Contractor. I didn't make any money in 2020 but I had business expenses. Do I include this on my personal tax return?

Yes, as Ernie says, an LLC owned by more than one person is taxed as either a partnership (1065) or as a corporation (1120). These returns are part of TurboTax Business (which is not the same as Home & Business).

 

There is an exception, if the owners of the LLC are married to each other and they live in a community property state, then they each file a Schedule C on the 1040, dividing their income and expenses according to how much they contributed to the business.

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