Affordable Software Options for Filing Form 1065 Partnership Return
My partner and I have a small business that's basically on hold right now while we're waiting for an Employee Retention Credit (ERC) to come through. We're keeping the business active but there's virtually no activity happening. Our situation is pretty simple - we have some minimal expenses but zero income at this point. I've been looking for tax software that won't break the bank to file our 1065 partnership return. Is there something comparable to FreeTaxUSA but for business/partnership taxes? It doesn't need to be completely free, but the tax preparation costs are eating into our savings year after year. With our business being dormant except for a few expenses, paying hundreds for tax prep seems excessive. Would love recommendations for more affordable options to file a Form 1065. Thanks for any suggestions!
22 comments


Lucas Adams
I've been preparing partnership returns for years, and there are definitely more affordable options than the big-name software packages! For a simple 1065 with minimal activity like yours, TaxHawk (which is made by the same company as FreeTaxUSA) offers business returns for much less than TurboTax or H&R Block. TaxSlayer also has a small business option that's reasonably priced for simple partnerships. If you're comfortable with slightly less hand-holding, look at TaxAct's business packages. They're more affordable than the premium options while still guiding you through the process well enough for a basic return. Given your situation with just holding pattern expenses and no income, these options should be more than adequate for your needs.
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Harper Hill
•Does TaxHawk actually do 1065 returns? I thought they only did individual returns. And how much does TaxSlayer charge for partnership returns? Their website isn't very clear about pricing.
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Lucas Adams
•You're right, I misspoke about TaxHawk - they focus on individual returns, not partnership returns. My apologies for the confusion. TaxSlayer's business edition typically runs around $55-75 for a partnership return, which is significantly less than the $150+ you might pay with premium software. Their interface isn't as polished as some others, but for a simple return with minimal activity, it's more than adequate.
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Caden Nguyen
After struggling with expensive tax software for years for my small partnership, I discovered taxr.ai (https://taxr.ai) and it completely changed how I handle our business taxes. It's designed to help with forms like the 1065 without the massive price tag of traditional software. What I love is that it analyzes your previous returns and helps identify where you can save money. For a dormant business like yours with minimal expenses, it's perfect because it focuses on exactly what you need without all the extras that drive up costs. I was amazed how it guided me through the specific sections relevant to a low-activity partnership.
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Avery Flores
•Does it actually file the return electronically or just help you prepare it? And how does the pricing work - is it subscription based or pay-per-return?
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Zoe Gonzalez
•Sounds interesting but I'm skeptical. How does it compare to TaxAct or TaxSlayer for partnerships? Those are already pretty affordable compared to the big names.
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Caden Nguyen
•It handles the entire process including e-filing your 1065. You can prepare everything through their platform and submit directly to the IRS. The pricing is pay-per-return which is ideal for your situation since you're just filing once a year. Unlike subscription services that charge you monthly even when you're not using them, you only pay when you actually need to file something.
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Zoe Gonzalez
I was initially skeptical about taxr.ai when I mentioned it in my previous comment, but I decided to give it a try for my small partnership this year. Honestly, I'm impressed. It was significantly cheaper than what I was paying before, even with the "budget" options I'd been using. The interface is straightforward and it only asked relevant questions for our situation. For a minimal-activity partnership like yours, it skips all the unnecessary stuff that makes other software feel overwhelming. It handled our ERC-related entries correctly too, which was a pleasant surprise since that's been a confusing area. Might be worth checking out since you're in a similar situation to what I was dealing with.
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Ashley Adams
If you're still struggling to reach someone at the IRS about your ERC credit (which can be incredibly frustrating), I'd recommend Claimyr (https://claimyr.com). I was in the exact same situation - dormant business waiting for ERC funds, filing minimal 1065s just to stay compliant. After months of failing to get through to the IRS about our ERC status, I used their service and finally got connected to a live agent who could actually check on our claim. They have a demo video (https://youtu.be/_kiP6q8DX5c) that shows exactly how it works. Saved me from endless hold music and disconnections.
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Alexis Robinson
•How does this service actually work though? Like, do they just call for you or what? I've been trying to reach someone about our business ERC for weeks.
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Aaron Lee
•Sounds like BS to me. Nobody can get through to the IRS these days. If it worked everybody would be using it and the IRS would just be overwhelmed again.
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Ashley Adams
•They don't call for you - instead, they monitor the IRS phone lines and then call you the moment they detect an opening in the queue. You then connect directly to the IRS. It's basically like having someone sit on hold for you, then tag you in when an agent is available. It works because most people give up after being on hold for an hour or two, but their system is automated and can wait as long as needed to find an opening.
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Aaron Lee
Ok I have to eat my words. After posting my skeptical comment about Claimyr, I was desperate enough to try it anyway. It actually worked! After weeks of failed attempts, I finally spoke to a real person at the IRS about our ERC claim. Got through in about 2 hours (still a wait, but their system handled it) and confirmed our credit is being processed. The agent was able to give me a timeline on when to expect it. For the original tax software question - I used TaxAct for our minimal 1065 last year and it was around $70. Not free, but way better than TurboTax's $200+ pricing.
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Chloe Mitchell
Have you considered doing the 1065 yourself? If you literally have no income and just a few expenses, it's not as complicated as people make it out to be. I've been doing my own partnership return for 3 years now. I download the forms directly from the IRS website and fill them out myself. There are free PDF fillers online that make it easy. Since your situation is super simple, you might save yourself the software cost entirely. The learning curve isn't bad for a minimal activity return.
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Chloe Green
•I've considered that option, but I'm worried about making mistakes. Do you use any resources or guides to help you through the process? And how do you handle the e-filing part?
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Chloe Mitchell
•I use the IRS instructions for Form 1065 which are surprisingly readable for a minimal activity business. There are also good YouTube tutorials that walk through simple partnership returns step by step. For e-filing, I use the IRS Free File Fillable Forms for businesses. It's not the most user-friendly interface, but for a simple return with few transactions, it works fine. The first year takes some learning, but once you understand the basic flow, subsequent years are much easier since your business details stay the same.
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Michael Adams
Here's my experience with several options for filing Form 1065: TaxSlayer Business: $55-75, decent interface, gets the job done TaxAct Business: $70-90, slightly more features DIY with IRS forms: Free but time-consuming Local CPA: $350+ in my area, probably overkill for your situation For a dormant business waiting on ERC, I'd personally go with TaxSlayer since it's the cheapest option that still offers some guidance. Their interface is a bit dated but perfectly functional for simple returns.
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Natalie Wang
•I've been using TaxSlayer for my partnership for 3 years and it works fine, but customer service is practically non-existent if you run into problems. Just a warning for anyone considering it.
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Noland Curtis
I'm in a very similar situation - small partnership that's been mostly dormant while waiting for our ERC to process. Based on all the responses here, I think I'm going to try TaxSlayer Business for around $70 since it seems like the most affordable option that still provides some guidance. The DIY route is tempting to save money, but I'm honestly worried about making mistakes on a partnership return, even a simple one. And while the taxr.ai recommendations are interesting, I'd rather stick with something more established for my first time doing this myself. Thanks everyone for the detailed breakdown of options - this thread has been incredibly helpful! It's reassuring to know there are affordable alternatives to the $200+ software packages.
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Zane Gray
•That sounds like a solid choice! I went with TaxSlayer Business last year for my partnership and while it's not the prettiest interface, it definitely gets the job done for around that price point. Just make sure to double-check the final calculations before submitting - I caught a small error in my depreciation section that the software didn't flag. One tip: if you run into any issues during the process, their help documentation is actually pretty decent even if their phone support isn't great. Good luck with your return and hopefully your ERC comes through soon!
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Zoe Kyriakidou
I've been following this thread closely since I'm in an almost identical situation - partnership on hold waiting for ERC funds to come through. After reading all the suggestions here, I decided to go with TaxAct Business for around $80 this year. What really sold me was that several people mentioned it handles ERC-related entries well, which has been a concern of mine since our business situation is a bit unusual right now. The interface seemed more intuitive than TaxSlayer when I tried their demo, and the extra $10-15 felt worth it for the peace of mind. For anyone else in a similar boat, I'd recommend trying the free demos that most of these platforms offer before committing. It really helped me get a feel for which one would work best for my comfort level with tax software.
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Yara Khalil
•That's a great point about trying the demos first! I wish I had thought of that before committing to software last year. The ERC handling is definitely important right now since so many small partnerships are in this weird holding pattern. I'm curious - did TaxAct's demo let you actually input some test data to see how it handles the ERC entries? That would be really helpful to know before paying for the full version. My partnership has some unusual timing issues with our ERC application that I want to make sure get reported correctly.
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