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Get your taxes done using TurboTax
You have to understand that "draws" you take as an owner of the corp is NOT reported anywhere on your form 1040. The net profits are sent to the 1040 via the K-1 form and you are taxed on that profit in the year it is earned even if you did not take any draws from the company account in the year you earned/were taxed on it. This is a basic bookkeeping concept and if you are at all confused about this situation then please get educated. A sit down with a local bookkeeper/tax pro would be wise if you need help with your bookkeeping and/or get a good bookkeeping program and/or do some research on your own.
‎August 13, 2022
7:44 AM
3,249 Views