LenaH
Employee Tax Expert

Business & farm

Some more clarification is needed to answer your question correctly - Did you take distributions of profits or issue yourself a W-2?

 

If it is a W-2, then you report it under wages on your 1040 and deduct it on your Schedule C, Line 26.

 

If it is a distribution, then that is also a balance sheet item and would not be reported on a Schedule C. You are being taxed on your net profit on your Schedule C.

 

@nongkangma

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