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NewBsnssOwnr
Level 1

1099 Misc or Not?

I have a small business, I have a payroll company and I take a salary, but I also paid myself extra thru the year, how do I report the extra income in my taxes? Is it a 1099 Misc. and do I put it in the 'other'?

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Accepted Solutions
MinhT1
Expert Alumni

1099 Misc or Not?

The extra money which you withdrew from your business is counted as withdrawals (from the profit of the business). It is not reported on your tax return. It is included in the net income (profit) of the business on which your tax is based. So you do not issue a form 1099-MISC or claim it as a business expenses.

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4 Replies
MinhT1
Expert Alumni

1099 Misc or Not?

The extra money which you withdrew from your business is counted as withdrawals (from the profit of the business). It is not reported on your tax return. It is included in the net income (profit) of the business on which your tax is based. So you do not issue a form 1099-MISC or claim it as a business expenses.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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NewBsnssOwnr
Level 1

1099 Misc or Not?

Your answer arrived a day late, February 1st, I already mailed a 1099 Misc to the IRS since they had to be post marked by Jan 31st.

What kind of trouble will this cause?

Thank you for your reply.

Critter
Level 15

1099 Misc or Not?

Ok ... your business ?   Is it an S-corp ?  

NewBsnssOwnr
Level 1

1099 Misc or Not?

Sole Proprietor I took it over in April 2019.

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