How do I enter the personal draw for the small business

[thepuzoo]

We entered the total income for the business and I cannot find how to enter the personal draw.

[RichardK]

If you are reporting business income and expenses on Schedule C Form 1040, you do not enter personal draw, click here for IRS publication 334.

[thepuzoo]

Don't I have to declare it as income?

[thepuzoo]

If I don't have personal income, how can I deduct home mortgage and charitable contributions?

[VolvoGirl]

No.  The Net Profit or Loss on Schedule C is your personal income in the first place.  Doesn't matter if you moved it from one bank account to another, etc.  

Or do you need to prepare a separate Business return for it?

[VolvoGirl]

The Net Profit is your Personal Income.  It all goes on your personal 1040 return.  Schedule C is on 1040 line 12.

[thepuzoo]

Thank you!