Sole proprietor, I paid taxes on my 2016 income It is now March 2017, I took owners dividends based on last years income. Will I be taxed again this year ? Thanks!!

[bang3232]

I am a sole proprietor, I paid taxes on my income in 2016. It is now March of 2017 and I moved money from my business checking account to my personal savings account based on 2016's income and classified it as an owner's dividend. Will I have to pay taxes on that again and will it show up as income in 2017 for my on my tax return? When is the best time to take an owners dividend or are there other ways to classify this transfer of money into my personal account?  Thank you!!

[WillK]

Since you are a sole proprietor you are taxed on your business income in the year it is earned (it doesn't matter if you take it out, or leave it in the business account). 

Only Corporations have dividends, since you are a sole proprietor it is called an owners draw.