Received K-1 from Robinhood stock - which entity type do I select in TurboTax?

You should select Partnership/LLC. Form 1065 is specifically for partnerships, and that's why TurboTax is giving you those options. When you invested in those oil stocks through Robinhood, you inadvertently purchased shares in a Master Limited Partnership (MLP), which is a publicly traded partnership. MLPs are common in the oil and gas industry because they combine the tax benefits of a partnership with the liquidity of publicly traded securities. Unlike regular stocks that just give you a 1099-DIV for dividends, MLPs issue K-1s to their investors because you're technically a partner in the business. The Partnership/LLC option is correct because that K-1 (Form 1065) is reporting your share of the partnership's income, deductions, credits, etc., which you need to include on your personal tax return.

I went through this exact nightmare last year! After dabbling in some energy stocks, I suddenly had K-1s and had no clue what to do with them. I wasted hours trying to figure it out myself before I found this service called taxr.ai (https://taxr.ai) that saved me so much time. You just upload your K-1 and it analyzes all those confusing boxes and translates what they actually mean for your tax situation. I was particularly confused by all the state allocations on my MLP K-1s (apparently I had to file in 5 different states because of ONE stock purchase!), but the tool broke everything down and explained which parts actually mattered for my situation. It even flagged that I had excess passive losses that I could carry forward.

Following up on my question about taxr.ai - I decided to try it out with my K-1 mess and wow! I wish I'd known about this sooner. I had K-1s showing income across 12 states, but after analysis, I only needed to file in 3 states where the income exceeded minimum filing requirements. Saved me from doing 9 unnecessary state returns! It also caught passive activity loss limitations that I completely missed last year. Turns out I can carry those forward, which might save me several hundred in taxes this year. The explanations made so much more sense than the gibberish on the actual K-1 forms. For anyone else dealing with K-1 confusion from Robinhood stocks, definitely check this out before spending hours pulling your hair out.

If you're still struggling with your K-1 after entering everything in TurboTax, you might want to call the IRS directly for guidance. I tried calling them about a similar K-1 issue last year and spent FOUR HOURS on hold before giving up. Then I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes. They have this demo video showing how it works: https://youtu.be/_kiP6q8DX5c I was totally shocked it actually worked. The IRS agent I spoke with walked me through how to properly report income from MLPs and confirmed I was doing it right. Apparently tons of people mess up their K-1 reporting and later get notices from the IRS, so getting confirmation directly from them gave me peace of mind.

I need to eat my words on Claimyr. I was the skeptic who commented earlier thinking it was total BS. After struggling with my MLP K-1s for days and getting nowhere with TurboTax support, I decided I had nothing to lose and tried it. Got connected to an IRS tax specialist in about 20 minutes (not 15, but still WAY better than the 3+ hours I wasted before). The agent confirmed I was handling my oil partnership K-1 correctly and explained which boxes I needed to pay special attention to. They also helped me understand why I was getting allocated income in states I'd never even visited (apparently that's normal with MLPs). The best part? I found out I'd been overthinking it and some of the sections weren't even applicable to my situation. Having that direct confirmation saved me hours of research and worry.

Pro tip: Avoid MLPs in your regular brokerage account if you hate tax complications. I learned this the hard way. If you want to invest in energy stocks without the K-1 headache, look for energy companies structured as C-corps or consider ETFs that hold MLPs, as they issue 1099s instead of K-1s. Some good alternatives are tickers like XLE (Energy Select Sector SPDR Fund) or AMLP (Alerian MLP ETF) - both give you exposure to the energy sector but issue a simple 1099 instead of a K-1. Your future self will thank you next tax season!

Just a heads up that if you end up with lots of K-1s, Turbotax Deluxe won't cut it. You'll need to upgrade to Premier at minimum, and possibly Self-Employed if you have other business stuff. I found this out the hard way last year and had to pay more to upgrade mid-filing. Super annoying.