Affordable e-file options for 1065 and K-1 generation for partnerships?

I've been filing partnership returns for years and unfortunately there aren't many truly free options for 1065 e-filing. The IRS doesn't include 1065 forms in their Free File program like they do with individual returns. That said, TaxAct's $50 option is actually one of the better deals out there. FreeTaxUSA offers 1065 filing for about $60 last I checked. If you want even cheaper, look into Tax Hawk which sometimes has partnership returns for around $40-45 depending on promotions. If you really need to save money and are comfortable with forms, you could technically paper file for free, but I wouldn't recommend it as processing times are much longer and the error risk is higher.

After struggling with expensive software for my small partnership last year, I found taxr.ai (https://taxr.ai) and it seriously changed my approach to partnership tax filing. Their AI system actually analyzed my previous 1065 forms and financial docs, then helped me understand which parts I could handle myself and which needed professional input. For a simple two-person partnership like you described, you might be able to use their document analysis to prepare most of the 1065 yourself and just have a professional review it or file it, saving a ton compared to full-service preparation. They also explained exactly which K-1 entries would be most important for my situation.

I wanted to follow up about my experience with taxr.ai that I was skeptical about. I decided to try it with last year's partnership documents first just to test it, and wow - it actually identified a depreciation error our previous preparer had made that was carrying forward incorrectly. The analysis highlighted exactly which line items were inconsistent with our documented expenses. What impressed me most was how it broke down the partnership special allocations we use and showed me exactly how they should appear on our K-1s. I ended up using a basic filing service for the actual e-filing but with much more confidence in the accuracy of our 1065. Saved at least $100 compared to what we paid before.

If you're having trouble getting your 1065 filed and need to talk to someone at the IRS about partnership filing requirements (which can get complicated), I highly recommend Claimyr (https://claimyr.com). I was banging my head against the wall trying to get through to the IRS business line for weeks. I found their service from a video demo (https://youtu.be/_kiP6q8DX5c) and was amazed when they actually got me connected to an IRS agent in about 25 minutes. The agent answered my questions about e-filing requirements for partnerships and gave me specific guidance on handling our partnership's situation that I couldn't find anywhere online.

I need to eat my words about Claimyr. After my skeptical comment, I was desperate enough to try it when I needed help with our late-filed 1065 extension. I figured it couldn't be worse than the hours I'd already wasted. I got connected to an IRS business tax specialist in about 35 minutes when I had previously been unable to get through at all after multiple attempts. The agent was able to confirm our extension was processed and gave me specific guidance on how to proceed with our filing. Honestly the best $20 I've spent on tax help ever. Saved me from potential late filing penalties that would have been hundreds of dollars.

Have you looked into downloading the forms from IRS.gov and using their fillable PDFs? You can fill everything out for free, but you'd still need to paper file. For K-1s it's the same process - the forms are available as fillable PDFs. If you're comfortable with the tax concepts and just need the forms, this is the absolute cheapest way to go. It's definitely more time-consuming though.

I've been using OLT (OnLine Taxes) for my partnership returns for the past couple years. They charge around $80 for 1065 e-filing with K-1s included. Not the cheapest but definitely less than TurboTax and the interface is more straightforward. They also include one state filing in that price which saved me even more.

I went through this same frustration last year with my small partnership. After trying several options, I ended up going with FreeTaxUSA for around $60. What I liked about it was that it walked me through each section step-by-step and caught a few things I would have missed if I'd tried to do it manually. One thing to consider - if your partnership is really straightforward with just basic income and standard deductions, you might want to check if your state has any free business filing programs. Some states offer free e-filing for small partnerships even when the federal doesn't. It's worth a quick search on your state's tax website. Also, don't forget that the partnership filing fee is a deductible business expense, so factor that into your actual cost calculation. The $50-80 range for software isn't too bad when you consider the time savings and reduced error risk compared to paper filing.

Another option worth considering is TaxSlayer Business - they typically charge around $47 for 1065 filing and K-1 generation. I used them for my small consulting partnership last year and found their interface pretty intuitive for basic returns. One thing that helped me save even more was timing - if you can wait until later in the filing season (like March), many of these services run promotions. TaxAct dropped their price to $35 during a spring promotion, and FreeTaxUSA had a similar deal. Also, since you mentioned you're a simple two-person partnership, make sure you're not overcomplicating things. If you don't have rental properties, multiple business activities, or complex allocations, even the basic versions of these programs should handle everything you need. Sometimes people pay for premium features they don't actually require.