Boy you have been doing it wrong.
You can not expense amounts you pay yourself. See Schedule C instructions for line 26. <a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf">https://www.irs.gov/pub/irs-pdf/i1040sc.pdf</a>
And see Publication 334 page 34
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/p334.pdf">https://www.irs.gov/pub/irs-pdf/p334.pdf</a>
You cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.
You do not report or expense any amounts you paid to yourself or withdrew. And you don't report it as income to you. The net profit or loss IS your personal income in the first place. It is part of your personal 1040 return. And it doesn't matter which bank account you use to pay the expenses or deposit the income. It is all personally yours. You and the business are the same thing.
