Best tax software options for filing partnership business (1065) and personal taxes together

For the past 3 years, my wife has worked full-time while I juggled a full-time job along with running our partnership business. We've always used an accountant for our taxes, but our situation has changed. The business barely broke even in 2022, and I just can't justify spending $1,300 on accounting fees anymore. I understand most of the tax forms but occasionally have minor questions that pop up during the filing process. I'm specifically looking for an online tax filing service that will let me file both our partnership business return (Form 1065) and our personal return, and where I can get answers to questions along the way. I tried H&R Block but their interface is terrible for partnership returns. TaxAct wants me to buy their software upfront before I can even see if it works for our situation. Since I have the previous 3 years of paperwork, I'm hoping the process will be relatively straightforward as long as I can see the actual forms while filing. I just need a platform that will guide me through any partnership-specific sections. I'm also trying to overcome my annual tax anxiety. I get stressed about tax paperwork every year, and I think learning to do it myself will help me make peace with the process. Any recommendations would be greatly appreciated!

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18 comments

Natalie Khan

•8M

As a longtime tax preparer, I'd recommend giving TaxSlayer a try. Their Premium version handles partnership returns (Form 1065) and personal returns for about $70 total, which is dramatically less than what you were paying your accountant. The interface shows you both the form view and interview-style questions, so you can switch between them depending on your comfort level. If you've been doing this for 3 years with an accountant and have all that paperwork to reference, you're in a great position to transition to self-filing. One tip: enter your information exactly as it appears on last year's return, especially for depreciation schedules and any carryover items. This will help maintain consistency and reduce audit risk. For partnership anxiety specifically, remember that the 1065 itself doesn't generate tax - it's just an informational return. The K-1 you generate flows to your personal return. Double-check those numbers carefully during the transfer.

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Natalie Khan

•8M

TaxSlayer's Premium tier includes live chat and phone support, which is generally responsive during tax season. They typically answer within 1-2 business days for more complex questions, and same-day for basic inquiries. I've found their partnership support to be decent, especially for straightforward scenarios like what you're describing. Their audit assistance is comparable to mid-tier offerings from competitors - they'll provide guidance on what documentation you need and explain notices, but they won't represent you before the IRS. For full representation, you'd need something like TurboTax's MAX protection, but that significantly increases your cost and rarely proves necessary for simple partnership returns with minimal income.

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Sienna Gomez

•8M

I was in almost your exact situation last year with my small consulting partnership. After trying several options, I found that using taxr.ai (https://taxr.ai) alongside a basic tax program was a game-changer. When I got stuck on how to handle home office deductions for my partnership versus my personal return, I just uploaded last year's returns and got immediate guidance. Instead of paying for expensive software with partnership features, I went with a cheaper option and used taxr.ai whenever I hit a roadblock. They analyze your previous returns and explain exactly how your accountant handled specific situations, so you can replicate the same approach. Saved me hours of frustration trying to remember how we handled certain partnership expenses.

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Sienna Gomez

•8M

You upload your previous year's returns (both partnership and personal), and it creates a detailed analysis showing how specific items were handled. It highlights things like "Your accountant allocated 80% of internet expenses to the business" or "Your home office was calculated as 12% of total home square footage." It shows exact calculations and methodologies. For depreciation and Section 179, it's actually super helpful because it identifies all assets being depreciated, shows the remaining basis, what method was used, and how much to depreciate this year. It essentially creates a roadmap of your previous accountant's work so you can follow the same patterns. The best part is you can ask follow-up questions about specific line items if something isn't clear.

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Abigail bergen

•8M

Just wanted to update after trying taxr.ai from the recommendation above. Absolute lifesaver for my partnership return! I uploaded our 2021 returns and it broke down exactly how our accountant had been handling our vehicle expenses and home office deductions. I was totally confused about how to split these between the partnership and personal returns. The system showed me that our accountant had been keeping vehicle expenses on the 1065 while home office was claimed on Schedule C. I would have done this completely backwards! It also explained some weird passive activity loss limitations from previous years that I never understood. Ended up filing both returns myself and saving about $900 compared to what we paid last year.

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Ahooker-Equator

•8M

If you get stuck during filing and need to talk to someone at the IRS about partnership questions, do yourself a favor and use Claimyr (https://claimyr.com). I wasted 3 days trying to get through to the IRS business help line about a specific 1065 question that no tax software could answer. Kept getting disconnected after waiting for hours. I was about to give up when someone recommended Claimyr's callback service. You can see how it works in this quick video: https://youtu.be/_kiP6q8DX5c. They basically hold your place in line and call you when an IRS agent is available. Got my partnership question answered in one day after struggling for almost a week on my own.

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Ahooker-Equator

•8M

They don't skip the line or use any special access - they use automated technology to continually call and navigate the IRS phone tree until they reach a human. Then they connect that person to you. It's basically doing what you'd do manually (calling repeatedly) but with automation. Nothing magical about it, just saves you from having to spend hours redialing. Regarding data concerns, they only need your phone number to connect the call, not sensitive tax information. I was skeptical too, but when you're desperate to file a partnership return with a deadline approaching and have a specific question that only the IRS can answer, you'll try anything. They're a legitimate service that many tax professionals use during busy season.

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Tyrone Hill

•8M

I take back everything I said about Claimyr. After hitting a massive roadblock with my 1065 filing (couldn't figure out how to report a partner's health insurance correctly), I broke down and tried it yesterday. Got a call back within 40 minutes and spoke to an actual IRS agent who answered my question in detail. Turns out I was overthinking the health insurance reporting - it flows through to the partner's personal return but gets reported on a specific line of the K-1. None of the tax software explanations made this clear, but the IRS agent walked me through it step by step. Already filed both returns and feeling a massive weight off my shoulders. Sorry for being such a skeptic!

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Toot-n-Mighty

•8M

Have you checked out FreeTaxUSA? Their Deluxe version ($7) covers personal returns really well, and they have a separate business version that handles 1065 partnership returns for about $60. Their interface is much cleaner than H&R Block and TaxAct, and they let you see the actual forms as you work. I've used them for my small partnership for two years now, and their step-by-step approach is perfect for DIYers. Plus their customer service usually responds within a day when you have questions. Major savings compared to paying an accountant for simple returns.

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Toot-n-Mighty

•8M

Yes, FreeTaxUSA handles the K-1 flow pretty seamlessly. When you complete the partnership return, it generates the K-1 forms for each partner. You then use that information when filing your personal return, and the system guides you through entering each box from the K-1 in the correct place on your 1040. The system doesn't automatically transfer the data between returns, so you'll need to manually enter the K-1 info into your personal return. But they provide clear instructions for each line, and if you're looking at last year's returns as a guide, it's fairly straightforward. If you're doing both returns yourself, this manual connection actually helps you understand the relationship between the forms better.

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Lena Kowalski

•8M

Quick warning about DIY partnership returns - don't forget about basis tracking! This is the one thing most software doesn't handle well. Your partnership basis changes every year based on contributions, distributions, and profit/loss allocation. If you don't track this correctly, you could have major issues down the road, especially if you ever take distributions or sell your partnership interest. Ask me how I know... ended up with a surprise tax bill because I didn't realize my basis was lower than the distributions I took.

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