The Internal Revenue Service requires business partners to enter financial information regarding each partner’s respective share of business income, credits and deductions. The K-1 form is used to specify this information. The IRS requires K-1 information on several tax forms. This includes Form 1041 for estates, Form 1065 for partnerships and Form 1120S for corporations. As a result, it can be a bit imposing to make sure the right information is filed on the right form. Software programs can provide tremendous help in preparing K-1 forms and using K-1 information to file taxes appropriately.
H&R Block – Premium & Business At Home
Formerly called “Tax Cut,” the version published in 2009 is called H&R Block Premium & Business software. It prepares K-1 data as well as a multitude of business tax-related tasks. The program is specially designed to accommodate the needs of partnerships, LLCs and corporations. This Windows-based program guides you through every step, checks for errors and maximizes deductions. You also get a live tax advice session free. Backed and developed by the well-known H&R Block company, this software can provide a degree of confidence in accuracy, along with the ability to access the company's tax professionals if you run into a problem. The estimated price range is $45 to $75.
TurboTax Business – Corporations, Partnerships, LLCs
This software guides you through every step involved in preparing your 1041 form for Estates and Trusts, on which your K-1 information is entered. This can certainly come handy because based on your situation, the information may have to be entered in more than one place. If you happen to use QuickBooks, there is also a tool to import your data directly into the TurboTax Business program. That will can save you valuable time by eliminating the need to reenter financial data. TurboTax will also guide you through all the steps needed to accurately enter expenses and income if you have been doing these tasks manually. The estimated price range for this Windows software is $75 to $150.
TaxACT 2009 Business
TaxAct provides affordable software for businesses that can be downloaded online or purchased on CD-ROM. There is a special 1065 program specifically developed for partnerships and includes the K-1 form and filing information. The program automatically calculates partnership, estate and S corporation tax returns, completes forms, updates related line items as you enter information, and provides you with a calculator to track and monitor allocations. Your Schedule K-1 items for every partner are automatically updated and allocated as you enter the income data. The program even provides you with the capability to integrate and transfer data to state tax forms. TaxAct only provides online services for Mac users. The price is $39.95 for CD-ROM or online download.