The IRS website says to pay yourself from a draw account on a sole prop. Where do I enter this information on a schedule C?

[MinhT · Accepted solution]

You do not report the amounts that you draw from your business on your schedule C as they are not tax deductible.

The IRS recommends the draw account only to track how much money you have withdrawn for the business.

This is an extract from an IRS document:

Draw account

If you are a  sole proprietor  or partner in a  partnership , the money or other forms of payment you take from your business should be accounted for in a draw account. This helps you know what amount of benefits you have taken from the business during the year. You cannot deduct the sole proprietor s own salary or any personal withdrawals made from the business.