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thevoleks
New Member

Which TurboTax should I use if I am not itemizing (standard deduction is higher), have severals 1099s, and am also an LLC on part of my income?

I am an independent contractor with several 1099s, my wife has one 1099, we are also together an LLC for one of my 1099s, and we both receive social security, and I receive IRA distributions. Not itemizing because std deduction is now more. What TurboTax product should I use filing jointly?

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Coleen3
Intuit Alumni

Which TurboTax should I use if I am not itemizing (standard deduction is higher), have severals 1099s, and am also an LLC on part of my income?

To include your contractor income, you must use the Home and Business for desktop or Self-Employed for online.

Here's a caution if you both are in the LLC. You may need to file as a Parnership unless you live in a community property state.

A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership. A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company) (See below). 

Note also that mere joint ownership of property that is not a trade or business does not qualify for the election. The spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business. The meaning of “material participation” is the same as under the passive activity loss rules in section 469(h) and the corresponding regulations (see Publication 925, Passive Activity and At-Risk Rules). Note that, except as provided in section 469(c)(7), rental real estate income or loss generally is passive under section 469, even if the material participation rules are satisfied, and filing as a qualified joint venture will not alter the character of passive income or loss.

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1 Reply
Coleen3
Intuit Alumni

Which TurboTax should I use if I am not itemizing (standard deduction is higher), have severals 1099s, and am also an LLC on part of my income?

To include your contractor income, you must use the Home and Business for desktop or Self-Employed for online.

Here's a caution if you both are in the LLC. You may need to file as a Parnership unless you live in a community property state.

A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership. A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company) (See below). 

Note also that mere joint ownership of property that is not a trade or business does not qualify for the election. The spouses must share the items of income, gain, loss, deduction, and credit in accordance with each spouse's interest in the business. The meaning of “material participation” is the same as under the passive activity loss rules in section 469(h) and the corresponding regulations (see Publication 925, Passive Activity and At-Risk Rules). Note that, except as provided in section 469(c)(7), rental real estate income or loss generally is passive under section 469, even if the material participation rules are satisfied, and filing as a qualified joint venture will not alter the character of passive income or loss.

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