Schedule C and K-1

Forum|Forum|5 years ago
March 1, 2021
3 replies
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My wife and I formed an LLC (Domestic Limited Liability) in 2020. I started on my 1040 in December and our business taxes since they are due on March 15. Completed the latter which generated a schedule K-1. Trying to finish up our Joint Taxes using TurboTax Deluxe. During the interview I'm asked if we received a K-1, which we did. I proceed to enter that information so now it seems as if there are two identical entries in the Business Items section; one for "Business Income and Expenses (Such C)" and right below it "Schedules K-1, Q". The entered information appears to be a duplicate. Do I remove the entries I had made previously for the Business Income section which generates the Schedule C? This is our first year as filing as an LLC.

VolvoGirl

Employee

Why did you fill,out Schedule C? For the same business? No. You already filed a separate Business return for it. Just enter the K-1. So delete the business Schedule C entries.

nwang97

Employee

How is the ownership split between you and your wife? If it's 50/50, each of your K-1's should reflect 50% of the income of the LLC, in which case you should enter both into TurboTax. They may look identical, but they each represent 50% of the income. If only one of you owns 100% of the LLC, then only that person should receive a K-1 for 100% of the LLC income.

ColeenD3

As nwang97 explained, the K-1 issue can be resolved. If you still have the Schedule C showing, this is how to delete it.

Here's the general procedure for viewing the forms list and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

Open or continue your return in TurboTax.
In the left menu, select Tax Tools and then Tools.
In the pop-up window Tool Center, choose Delete a form.
Select Delete next to the form/schedule/worksheet in the list and follow the instructions.

Carl11_2

Employee

My wife and I formed an LLC (Domestic Limited Liability) in 2020.

So if both you and your wife own the LLC, that means you have a multi-member LLC. You reported the income/expenses for that multi-member LLC on IRS Form 1065/Partnership return, which is due to the IRS by March 15th. That multi-member LLC issued each of you a K-1. Each of you will enter your K-1's on the 1040 joint tax return.

Under no circumstances and with no exceptions, will you file a SCH C for this business. So if you started the SCH C on your personal joint 1040 tax return, you need to delete that SCH C entirely. The SCH C is only used for a business with one owner, and that is not incorporated. Your business has two owners, so SCH C will not be used.