Join 3,423 readers in helping fund MetaFilter (Hide)


Help me sort through my income tax filing options
March 22, 2014 11:45 AM   Subscribe

Free online tax filing that allows a Schedule K-1?

I need to file my income taxes and for the most part they should be pretty simple. I own no property, have no investments, all my income is from a single employer in one state, and so on. So in the past I’ve been able to use the free TurboTax e-file and everything was easy.

The only complication now is I’m listed as a partner in my dad’s LLC and receive a K-1 form that I’m supposed to file. I don’t actually earn any income from the LLC, but I’m on it just for legal reasons in case something happened to him. My understanding though is that even without earning anything I still have to note the LLC’s tax ID number on my return and just report $0 on it. TurboTax, however, wants to charge me for their Premier version just to do that though (which more than wipes out any refund I might be getting). I know there are other services that also do free filing, but do any allow for the K-1?

(And yes, I know I could just do everything manually, but I prefer the ease of e-filing if possible.)
posted by fishmasta to Work & Money (4 answers total) 4 users marked this as a favorite
 
Anyone can e-file with Free File Fillable Forms but you will still be filling out the forms manually (just on your computer instead of on paper). It has access to 1040 forms and Schedule E which is I think the schedule you report your K-1 information on.
posted by muddgirl at 1:18 PM on March 22


If there's no income I don't see why you'd have to report it. Say the IRS audits; what could possibly happen?
posted by jpe at 3:54 PM on March 22


I had a similar issue with TurboTax and Schedule C and ended up using H&R Block. However, it looks like you only get Schedules C and E for free if you qualify for Free File (if you make less than $58,000) since the IRS link seemingly sends you to the $36.99 version, not the free version you find on H&R Block's website. If that fails, I'd just do it by hand. It's not going to be hard, especially with no income from the LLC.
posted by hoyland at 4:34 PM on March 22


I'm guessing that the K-1 is from an S-corp - I believe their only issued for S-corps, partnerships, and some trusts and estates, and an S-corp sounds like it's the most likely. The way S-corps are taxed is that the taxes are the responsibilities of the owners. The corporation itself owes no taxes.

As an example, assume that the S-corp made $100,000 profit in 2013, and you own 25%. Your taxable income is increased by $25,000. Most S-corps have mandatory distributions for tax payments, so you should be getting money to pay those taxes.

In short, if Part III line 1 of the K-1 is non-zero, and you own a non-zero percentage (Part I box F), you may owe taxes on the S-corps income.
posted by unix at 6:57 PM on March 22


« Older A thousand years ago (actually...   |  We are starting the first wave... Newer »

You are not logged in, either login or create an account to post comments