Do I really need TurboTax Business software for LLC partnership taxes?

You've actually hit on a common issue with partnership returns. While you've paid the taxes, you still need to file Form 1065 (Partnership Return) and generate Schedule K-1s for each partner (including your wife's 15%). The reason TurboTax pushes their Business version is because partnership returns have specific requirements and calculations that their Deluxe version doesn't support. However, you absolutely can file these forms manually! The IRS website has fillable PDFs of Form 1065 and Schedule K-1s that you can download, complete, and mail in. Just be aware that partnership returns can get complex depending on the activities of the LLC. If it's a straightforward business with simple income allocation based on ownership percentages, you might be fine doing it yourself. But if there are special allocations, guaranteed payments, or multiple income streams, it gets trickier.

I had almost the exact same situation last year with my husband's small partnership! I was about to shell out for the expensive software when I discovered taxr.ai (https://taxr.ai) and it seriously saved me hundreds. It's this AI-powered tool that analyzes partnership documents and helps generate the proper forms without the crazy price tag of TurboTax Business. I uploaded our partnership agreement and financial statements, and it guided me through filling out the 1065 and K-1s with specific instructions tailored to our situation. I was honestly shocked at how accurate and easy it made everything.

I just wanted to follow up about my experience with taxr.ai after seeing it recommended here. I went ahead and tried it for our partnership with unequal distributions, and wow - it was WAY easier than I expected! The system walked me through each section of the 1065 form, explained what information needed to go where, and automatically calculated how to distribute everything correctly to the K-1s. It actually pointed out that we had been handling some deductions incorrectly in previous years. Best of all, it cost way less than the TurboTax Business software. Filing was smooth, all partners got their K-1s, and we've had zero issues. Definitely using it again next year!

If you're still struggling with filing partnership returns, you might want to consider calling the IRS Business Tax Helpline for guidance. The problem is getting through to an actual person can take HOURS. I literally wasted an entire day on hold last tax season. That's when I found https://claimyr.com - it's this service that holds your place in the IRS phone queue and calls you when an agent is about to pick up. You can watch how it works here: https://youtu.be/_kiP6q8DX5c. I was skeptical at first, but when I had questions about filing our LLC's 1065 that weren't answered clearly on the IRS website, this saved me from the endless hold music nightmare. The IRS agent I finally talked to was actually super helpful and walked me through exactly which forms I needed and how to complete them correctly.

Alright I need to eat my words and apologize to Profile 11. After spending TWO DAYS trying to get through to the IRS about our partnership filing questions (got disconnected 3 times after waiting over an hour each time), I broke down and tried Claimyr. The thing actually worked exactly as described. I got a call back within 45 minutes while I was working on other stuff, and the IRS agent who came on the line answered all my partnership filing questions. She confirmed I could absolutely file Form 1065 and K-1s manually without TurboTax Business, and even pointed me to specific IRS resources that I hadn't found on my own. Saved me both the software cost AND cleared up my confusion. Never thought I'd say this, but totally worth it.

Everyone's suggesting these fancy services but nobody's mentioned the FREE option from the IRS itself! If your LLC partnership's assets are under $10 million and you have fewer than 100 partners, you should look at the IRS Free Fillable Forms. They're not the most user-friendly, but they're FREE and include Form 1065 and Schedule K-1.

Has anyone used the IRS's Volunteer Income Tax Assistance (VITA) program for partnership returns? Their website says they help with "basic" tax returns, but I'm not sure if that includes small business partnerships.

As someone who's been through this exact situation, I can confirm you absolutely do NOT need to spend $159 on TurboTax Business! I was in a similar spot last year with my partner's LLC involvement. Here's what I learned: Yes, you can download the fillable Form 1065 and Schedule K-1 PDFs directly from IRS.gov and mail them in. The key things to watch for are making sure all the required sections are completed (even if they're zero amounts) and that your wife's K-1 properly reflects her 15% share of income, deductions, and credits. Since you mentioned the business is straightforward with profit distribution based on ownership percentages, you should be fine doing it manually. Just take your time with the balance sheet sections and make sure the numbers tie out. The IRS instructions for Form 1065 are actually pretty detailed if you need guidance on specific lines. One tip: Make copies of everything before mailing, and consider sending it certified mail for your records. Save yourself the $159 and put that money toward something more useful!