I'm self-employed and filled out schedule C for my business. I've received wages as a manager of the business, how should this be handled? It is personal income, but should it not be expenses also on Schedule C, line 26? Step by step is not leading there.
How to handle wages as an expense of the business and how to fill it in?
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A Schedule C is not allowed to pay the owner a wage. All net profit of the business is taxed to the owner whether distributed to the owner or not. What you considered a wage was just an act of taking money from the business and does not affect your tax tax filing at all. No payment to yourself is entered and all net profit is taxed as your personal income.
A Schedule C is not allowed to pay the owner a wage. All net profit of the business is taxed to the owner whether distributed to the owner or not. What you considered a wage was just an act of taking money from the business and does not affect your tax tax filing at all. No payment to yourself is entered and all net profit is taxed as your personal income.
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