For anyone still looking for options, I used FreeTaxUSA for my partnership return last year and it was only $69 for the federal Form 1065. Way cheaper than TurboTax ($199) or H&R Block ($149) for the same thing. The interface isn't as slick as the expensive options, but it gets the job done and asks all the right questions. Just make sure you have all your income and expense categories organized before you start.

I went through this exact same situation last year with my small consulting partnership! After researching all the options mentioned here, I ended up using TaxAct Business for around $75, which was a good middle ground between the free manual option and the expensive software. One thing I'd add that really helped me - before you choose any software or method, make sure you understand the difference between guaranteed payments and distributive shares. This tripped me up initially and almost caused me to file incorrectly. The IRS has some good examples in Publication 541 that Malik mentioned. Also, don't forget that partnerships have different deadlines than individual returns - Form 1065 is due March 15th (not April 15th like personal taxes), though you can file for an extension. Since you're filing for 2023, you're already past the original deadline, so you might want to look into late filing penalties and whether you qualify for any exceptions. Good luck with your first partnership return! It's definitely more complex than personal taxes, but once you get through it the first time, future years become much easier.

Don't overthink this! The IRS processes millions of paper returns. As long as you: 1) Sign the return 2) Include all required forms 3) Attach your W2 to the front 4) Keep related forms together You'll be fine. I've been filing paper returns for 20+ years (yeah I know, I should e-file) and never had an issue even when I'm not 100% sure about the exact ordering.

I can confirm that form assembly order definitely matters! I learned this the hard way when my return got kicked back last year for "improper sequencing." Here's what I've found works consistently: 1. Form 1040 with W2(s) stapled to the FRONT (there's usually a designated attachment area) 2. Schedules 1, 2, 3 (if needed) - these go right after the 1040 3. Other schedules and forms in the order they're referenced in the 1040 instructions 4. For your Form 8949 situation - attach your bank statement pages directly behind Form 8949, not at the end of the return The key thing about supporting documents like your bank statement is they should be "married" to the form they support. Don't put all attachments at the end - that's what caused my delay last year. Also, only include the relevant pages of your bank statement that show the transactions reported on Form 8949. No need to send pages of unrelated account activity. One staple in the upper left corner for the whole package, make sure you sign the return, and you should be good to go. The IRS really does care about proper assembly - it helps their processing workflow.

I'm confused about withholding in these multi-state situations. My company withholds for my resident state (Oregon), but I travel to Washington and California for work regularly. Should I be having them withhold for those states too? Or do I just figure it out at tax time?

Great thread! I'm dealing with a similar situation but with a twist - I'm a freelancer with clients in multiple states. I have clients in Texas (no income tax), New York, and California, and I live in Colorado. From what I've learned, freelancers face even more complexity because we don't have employers handling withholdings. Each state has different rules about when freelance income is considered "sourced" to their state - some base it on where the work is performed, others on where the client is located, and some on where the services are delivered. For example, if I do graphic design work from my home office in Colorado for a New York client, some states would consider that Colorado income, while others might try to claim it as New York income if that's where the "benefit" of my work is received. Has anyone dealt with freelance income across state lines? I'm trying to figure out if I need to file non-resident returns in every state where I have clients, or if Colorado covers it all since I physically perform the work here.

Has anyone noticed that some tax software automatically fills in the payer info if you've used them before? I was entering a bunch of 1099-INTs and realized TurboTax remembered some banks from last year but got confused with the ones that changed names. Double check everything!

This is exactly why I always keep physical copies of my 1099 forms! I learned the hard way that relying on digital copies or memory can lead to transcription errors. Pro tip: if you're entering multiple 1099-INTs, do them all at once while you're focused rather than spreading it out over days. I made the mistake of doing a few one evening and finishing the rest a week later - ended up mixing up some of the EINs because I was rushing. The IRS notices for mismatched information are no joke and can delay your refund by months.

I've been following this thread closely as someone who went through a similar US-Germany tax transition in 2022, and there's one important aspect I haven't seen mentioned yet: the potential impact of state tax treaty benefits. While the federal US-Germany tax treaty is comprehensive, some US states don't automatically honor federal treaty provisions. Since your rental property is in California, you'll definitely need to file a California non-resident return (Form 540NR), and California has its own rules about recognizing foreign tax credits. California generally doesn't provide the same treaty benefits that federal taxes do, so you might end up with some level of triple taxation (US federal, California state, and German) on your rental income that can't be fully eliminated through credits. The good news is that California's tax rates are typically lower than German rates, so your German foreign tax credits on your federal return should still provide substantial relief. Also, make sure you understand the difference between the Foreign Tax Credit and Foreign Earned Income Exclusion. For your rental income, you'll want the Foreign Tax Credit since rental income doesn't qualify for the exclusion. But for future German employment income, the exclusion might be more beneficial depending on your situation. One practical tip: consider keeping separate bank accounts for your rental property income and expenses. This makes record-keeping much easier when you're dealing with currency conversions and different tax year reporting requirements between the countries. The learning curve is steep initially, but once you establish good systems and find the right professionals, it becomes much more manageable!

I went through a very similar situation when I moved from the US to Germany in 2020, and I can definitely relate to the sticker shock of those professional fees! Here are a few practical steps that helped me navigate this without breaking the bank: First, take advantage of the IRS Taxpayer Advocate Service - they have specialists who can help explain treaty provisions over the phone for free. I found them incredibly helpful for understanding how Article 23 of the US-Germany treaty applies to specific situations like ours. For the German side, look into local Lohnsteuerhilfeverein offices - these are non-profit tax assistance organizations that charge much lower fees (typically €200-400) compared to private Steuerberater. Many have staff who understand basic US-Germany tax coordination. One thing that saved me significant time and stress: I created a simple spreadsheet tracking all my income sources, tax payments, and relevant dates in both USD and EUR. This made it much easier to complete forms like 1116 for foreign tax credits and helped me catch potential issues early. Also, don't forget to check if your employer offers any expat tax assistance as part of your benefits package. Some German companies provide this support for international employees, even if it's not explicitly advertised. The €4000 quote you received is definitely on the high end. With some preparation and the right resources, you should be able to handle this for well under €1500 total. The first year is always the most challenging, but it gets much easier once you understand the process!