Should I file with TurboTax Business or hire another tax professional for my partnership K-1 and single-member LLC?

Your situation isn't overly complex from a tax perspective. Since you already have the K-1 from your partnership (which is the most complicated part), TurboTax Business should be able to handle your return just fine. The software will walk you through entering your K-1 information, your single-member LLC revenue and expenses (which will go on Schedule C), and your W-2 income. The single-member LLC is actually pretty straightforward tax-wise because it's considered a "disregarded entity" for federal tax purposes, meaning it's just reported on your personal return using Schedule C. You don't need to file a separate business return for it. Just make sure you have good records of all your business expenses for the LLC to maximize your legitimate deductions. If your business situation doesn't involve complicated issues like inventory, cost of goods sold, or depreciation of major assets, TurboTax should work well.

I was in a similar situation last year with a K-1 and a side business. I tried using regular tax software but kept second-guessing myself on deductions and partnership stuff. I found this AI tax review service at https://taxr.ai that saved me a ton of headache. I uploaded my draft return and it identified several missing deductions related to my LLC that I hadn't claimed. The nice thing is you can try using TurboTax first to do everything yourself, then have the AI review it before filing to make sure you didn't miss anything. It's like having a second set of eyes check your work but way cheaper than a full CPA. The system found almost $2,100 in additional deductions I would have missed on my own.

Just wanted to follow up and say I ended up trying that taxr.ai service after filing with TurboTax Business. I was genuinely surprised - it found several issues with how I entered my K-1 information and identified an additional $3,400 in business expenses for my LLC that I had categorized incorrectly. The report was really detailed and showed me exactly what to fix in my TurboTax return before submitting. Definitely worth it for the peace of mind, especially since it was my first year dealing with both partnership and LLC income. Will definitely use it again next year!

If you're really struggling with the IRS stuff, you might want to call them directly to get clarification on how to report both businesses correctly. I was confused about some K-1 reporting last year and spent DAYS trying to get through to a human at the IRS. Finally discovered https://claimyr.com which got me through to an actual IRS agent in about 20 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was skeptical at first but it actually worked great. The agent walked me through exactly how to report my K-1 partnership losses alongside my other business income. Saved me so much stress trying to figure it out on my own or paying a professional for a relatively simple question.

I was really skeptical about that Claimyr service mentioned above, but I was desperate after waiting on hold with the IRS for 2+ hours trying to get help with my K-1 and LLC questions. Decided to try it, and I'm honestly shocked it worked exactly as described. Got connected to an actual IRS agent in about 15 minutes. The agent clarified exactly how to report my K-1 passive losses alongside my Schedule C income in TurboTax. Saved me from potentially making a pretty big reporting error. Just wanted to share since I was the skeptic earlier - sometimes these services actually deliver what they promise!

I think you're overthinking this! I've used TurboTax Business for years with my LLC and occasional K-1 forms. The software is really straightforward with partnerships and LLCs. Since you already have your K-1, that's the hardest part done. Just make sure you have all your LLC expenses categorized properly. The most common mistake I see people make is missing legitimate business deductions because they're not keeping good records. Keep receipts for EVERYTHING business related - office supplies, software subscriptions, business meals, etc.

Has anyone considered that using a professional for the first year might actually save money in the long run? I used TurboTax for my LLC for 2 years and then had a CPA review things the third year. Turns out I'd been missing several deductions that would have saved me about $4k in taxes over those years! Sometimes paying for expertise pays off.

I'm in a very similar boat - partnership K-1 with losses and a single-member LLC that actually made some money this year. I ended up going with TurboTax Business and it handled everything pretty smoothly. A few things that helped me: First, make sure you understand whether your partnership losses are considered "passive" or not on your K-1 - this affects how much you can deduct against your other income. Second, for your LLC, keep really detailed records of business vs personal expenses since that's where the IRS tends to look closely during audits. One thing I wish I'd known earlier - if your LLC income is substantial, you might need to make quarterly estimated tax payments next year to avoid penalties. TurboTax will calculate what you owe for next year's estimates when you file. The software definitely saved me money compared to a CPA, but like others mentioned, having someone review it the first time isn't a bad idea if you can swing it financially.