You do not necessarily need a 1099 or to enter it if you are tracking all of your income and expenses and entering it as one lump sum. However, you cannot choose to just pay yourself $10 per month. When you are a sole proprietor (which sounds like you have not incorporated) your income and expenses all must be reported and that is how you arrive at "what you pay yourself" as far as the IRS is concerned. If you are using TurboTax Online, you will need to use TurboTax Premiere. You will select that you have income from a business or as a sole proprietor and choose the type of business. If you are using the desktop version of TurboTax, you will need to use Home and Business.
Under income, you will need to enter ALL money you received. If it is ALL reported on the 1099-K, then you can choose to just report your income using that. If you sell in other areas, like maybe FaceBook or something, then you could just include your income from everywhere and not use the 1099 as long as all income is accounted for. After you enter all of your income, you will then need to enter your expenses. After your expenses are all entered, this will be your business income and the income you will be taxed on.
Even if you are keeping money in a separate account to reinvest into your business, if it has not been spent, it is part of your personal business income. Once you actually spend it, that is when it is deducted from your profit again.
Basically, when you have a small business, the business is you. It is not like a corporation where they can keep their profits separate from the owners. Your profits are yours.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
