Does anyone know if TurboTax Business can handle LLC returns regardless of the classification? My LLC is set up as an S-Corp and I'm trying to decide if I need to hire an accountant or can DIY.

@Layla Mendes - I went through this exact same confusion when I first started my LLC! Here's what I learned: if you only have one member (just yourself), your LLC automatically defaults to "disregarded entity" status, which means you file taxes as a sole proprietor using Schedule C on your personal return. You don't need to file a separate business return. The easiest way to confirm is to look for any Form 8832 or Form 2553 in your records - these would show if you made a special election. If you can't find either of these forms, you're almost certainly under the default classification. Since you mentioned this is for a web design business you started last year, you'll likely be filing Schedule C with your 2025 personal tax return. Just make sure to track all your business expenses throughout the year - things like software subscriptions, equipment, home office expenses, etc. can really add up to significant deductions! If you want to double-check, the IRS business line at 800-829-4933 can tell you what's on file, though be prepared for potentially long wait times.

I'd say stick with your online return and add the Tax Pro service for $85. Since you're already 95% done, it seems wasteful to start over in person. The online Tax Pros have access to the same training and can handle most complex situations just fine. The key advantage is that they can see exactly what you've already entered and focus specifically on your unusual situation without you having to re-explain everything from scratch. Plus, you'll have a digital record of all communications and recommendations. If it turns out your situation is too complex for the online platform (which is rare), they'll let you know and you can always go in-person as a backup plan. But given that you've been successfully using their online system for 11 years, chances are good they can handle whatever you're dealing with.

I've used both H&R Block's online Tax Pro service and their in-person offices over the years, and honestly, the quality is pretty comparable. Since you're already 95% done with your online return, I'd definitely recommend just adding the Tax Pro review for $85 rather than starting over. The online Tax Pros can handle most complex situations - I've used them for things like rental property sales, stock options, and multiple state returns. They'll review everything you've already entered and focus specifically on your unusual situation. You'll also get to keep all your work and have a digital trail of their recommendations. The only time I'd suggest going in-person is if you really prefer face-to-face interaction or if your situation involves forms that their online system can't handle (which is pretty rare these days). But after 11 years of successful online filing, you're probably better off sticking with what you know works for you.

Just wanted to chime in as someone who went through this exact same situation last year with my small electrical contracting LLC. The confusion around Line 14 is totally understandable - the IRS instructions really are written like they're trying to confuse people! Based on what you've described, it sounds like you're on the right track with the advice you've gotten here. For our construction business, we had the same basic setup - ordinary business income that needed to be reported on Line 14a for self-employment tax purposes. One thing I learned the hard way is to make sure you're consistent between your Schedule K and each partner's individual K-1s. The totals on all the individual K-1s should add up to what's on the Schedule K. I made some math errors my first year and had to file amended returns. Also, since you mentioned you're trying to save money by doing this yourself, just be extra careful with the math and double-check everything. A small mistake on the partnership return affects both of your personal returns, so it can create twice the headache if you have to fix it later. Sometimes paying a CPA for a review (even if you do most of the work yourself) can be worth the peace of mind. Good luck with your first 1065 - you've got this!

As a tax professional who's helped dozens of small construction LLCs with their first partnership returns, I want to emphasize something that hasn't been mentioned yet - make sure you understand the difference between your distributive share and actual distributions when completing Line 14. Line 14a should reflect your share of the partnership's self-employment income regardless of how much cash you actually took out of the business. So even if you and your brother-in-law only withdrew $30,000 each but your share of business income was $53,000 each (after removing rental income), you'd still report the full $53,000 on Line 14a. This is a common source of confusion for new partnership filers. The self-employment tax is based on your allocated share of income, not your actual cash distributions. Any money you left in the business for equipment, working capital, etc. is still subject to self-employment tax in the year it was earned. Also, since you mentioned revenue of $135,000 for two partners, make sure you're properly tracking and deducting all your legitimate business expenses. Construction businesses often have significant deductible expenses (tools, vehicle expenses, materials, etc.) that can substantially reduce your taxable income if properly documented. The difference between gross revenue and net income after expenses is what determines your Line 14 amounts. Keep excellent records going forward - the IRS pays extra attention to cash-heavy businesses like construction, so having solid documentation will serve you well in the long run.

dont forget to check if your state has its own supplemental subsidy too! i live in california and we get extra help on top of the federal subsidies, but you have to pay those back separately. its confusing because some states have different rules for repayment than the federal system

Great question about ACA subsidy reconciliation! I went through something similar last year as a self-employed consultant. One key thing to remember is that you should definitely update your income estimate on the Marketplace as soon as you realize it's going to be higher - don't wait until tax time. This will reduce your monthly subsidy going forward and minimize the repayment shock at tax time. Also, keep in mind that the self-employed health insurance deduction (which goes on Schedule 1) is actually more valuable than just writing off premiums as a business expense, because it reduces your adjusted gross income. This can help lower your overall tax bracket and potentially affect other income-based calculations. If you're close to the 400% Federal Poverty Line threshold that Kyle mentioned, you might want to consider some year-end tax planning strategies to keep your income under that cap if possible - like maxing out retirement contributions or other deductible expenses.

Question for anyone who might know - I have a similar situation but with a 1099-K for online selling. Is that treated the same way as OP's 1099-MISC? And do we get to deduct expenses against that income?

This is a classic example of how additional income can create a much bigger tax impact than people expect. Your $5,000 grant isn't just taxed in isolation - it's stacked on top of your W-2 income, which means it's taxed at your highest marginal rate. With $72K in W-2 income, you're likely in the 22% tax bracket for 2024, so that $5,000 grant gets hit with 22% federal tax (about $1,100) plus any state taxes. Since nothing was withheld from the grant, you're paying that full amount at filing time. The real kicker is that this additional income also reduced the refund you would have gotten from your W-2 overwithholding. So you're seeing both the tax on the new income AND the loss of your expected refund. For next year, definitely consider making quarterly estimated payments if you receive similar grants, or increase your W-4 withholding to cover the extra tax liability. The IRS expects you to pay taxes throughout the year, not just at filing time.