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New Member
posted Jan 2, 2025 12:14:17 PM

How do you enter income as a sole proprietor ? I take owner draws so there is not a 1099. What kind of income is this? Where do you put the income from the business?

0 3 1238
3 Replies
Level 15
Jan 2, 2025 12:21:04 PM

See this TurboTax support FAQ for entering self-employment income - https://ttlc.intuit.com/turbotax-support/en-us/help-article/self-employment-taxes/report-income-self-employment/L5wADi3xQ_US_en_US?uid=m5frow26

 

Your net self-employment income is reported on your tax return which is the difference between your total self-employment income and your total self-employment expenses.  As a sole proprietor/independent contractor you do not take a draw from your net, the net income is your SE income.

 

Using the TurboTax online editions you will need to upgrade to the Premium edition to report your SE income and expenses.

Level 3
Jan 8, 2025 10:06:43 AM

Sch C, F, or E most likely.  Depends on the business.  And it's probably SE income.

 

Not intended to be legal or tax advice.

Expert Alumni
Jan 13, 2025 12:48:30 PM

it depends. DoninGA has provided an excellent example on how to enter the information but here are precise steps that may clarify how to enter these.

 

  1. Log in to TurboTax: Open TurboTax and log in to your account. If you're starting a new return, select the option to create a new tax return. 
  2. Navigate to the "Self-Employment" Section:
  3. Once you're in your tax return, you'll need to navigate to the section for self-employment income.
  4. Go to the "Federal" section of your return (this is where you report your income and deductions).
  5. Click on "Wages & Income" (or something similar, depending on the version of TurboTax you’re using).
  6. Look for the option to "Self-Employment Income and Expenses" or "Business Income". Enter Your Business Information:
  7. TurboTax will ask if you have a business or if you worked for yourself. Select "Yes" and enter the name of your business and the type of business you have.
  8. Fill out the business details section with information such as the name of your business, the type of business (you may choose a general category), and any relevant tax ID numbers (e.g., Employer Identification Number, if you have one). 
  9. Enter Your Income:
  10. After entering your business details, TurboTax will prompt you to enter your business income.
  • If you received Form 1099-NEC or other income forms, TurboTax will ask you to enter that information. You can either enter the income manually or upload the form, depending on the version you're using.
  • If you do not have a 1099-NEC but instead have income from clients/customers, you can directly enter the amount in the "Gross Receipts" field.

 

You do not need to report owner draws because the IRS is only interested in your income for the year made from the venture.

 

@davidgerlach