TurboTax HelpTurboTax HelpIntuit

What types of returns does TurboTax Business handle?

SOLVEDby TurboTaxTurboTax Windows5266Updated 4 weeks ago

TurboTax Business handles:

An estate consists of personal, real, and intangible property that was owned by someone at the time of their death, whereas a trust is an arrangement whereby property is given by one person (the settler) to be held by another (the trustee) for the purposes of benefiting a specific class of persons or the general public (the charitable purpose).

Tax returns filed on the behalf of estates and trusts are also called fiduciary returns. A fiduciary is an individual or organization legally responsible for managing assets on behalf of another party, usually called the beneficiary. The fiduciary is obligated to manage the beneficiary's assets in the best interests of the beneficiary.

Partnerships are a type of unincorporated business organization in which multiple owners, or partners, manage the business and are equally liable for its debts.

Unlike an LLC or a corporation, each partner shares responsibility for the company's profits, losses, debts, and liabilities.

The partnership will file a Form 1065 tax return and give each partner a K-1 showing their share of the business profits or losses. The partnership itself doesn't pay income taxes, but each partner has to report their share of business profits or losses on their individual tax return using the K-1 the partnership provides.

Limited Liability Companies (LLCs) are a type of business structure that combines the advantages of a corporation with those of a sole proprietorship or partnership.

Multi-member LLC profits and tax benefits are split by its owners (members). LLCs file a Form 1065 tax return for reporting purposes; the members report their business profits or losses on their individual (Form 1040) tax returns using the K-1 the LLC provides to them.

Not all multi-member LLC will file a 1065, however. A few will need to file as a corporation (Form 1120).

An S Corporation is a small business corporation with less than 100 shareholders which has elected to have its profits pass through to its shareholders, in the same manner as a partnership or sole proprietorship.

The owners (shareholders) of an S Corporation receive the benefit of limited liability, and are treated in the manner of partners for purposes of taxation. The S corporation itself will file an 1120S tax return, but usually doesn't pay tax. Instead, a K-1 is issued to each shareholder with their income and losses from the business, which they report on their personal tax return..

A C Corporation (usually simply called a "corporation") is a separate legal entity that offers the greatest flexibility with respect to ownership and the free transferability of ownership interest.

Corporations file their own tax returns using Form 1120 to report income and losses.

Income is first taxed at the corporate level and, when distributed as dividends, the same money is taxed again at the shareholder level. As a result, income generated by a corporation can be taxed twice.

Was this helpful?

You must sign in to vote, reply, or post

Found what you need?

Start my taxes

Already have an account? Sign In

rating(4.6/5 | 291,310 reviews)
Dynamic AdsDynamic Ads