I added a business and the income earned on that business is not income I personally made. It was strictly income coming into the business. I did not pay myself at all.

[pk · Accepted solution]

the busienss entity characteristics makes a huge difference --to wit:   (a)  single member LLCs are treated ( unless owner chooses to be treated as a s-corp) as a disregarded enitity --- treated just like a sole proprietor business and therefore  reported on schedule-C/C-EZ along with your own return;  (b) multimember LLC, and partnerships are treated as pass through entities -- you file a partnership return and issue K-1s to the  members who then pay the taxes ( partnership pays no taxes  directly ); (c)  C-Corp / S-Corp  work kind of similar except  S-Corp uses a K-1 to when acting as a pass through entity.

 Without your entity chracteristics, it is impossible to advise you.

[TaxGuyBill]

In order words, except for C-corporations, you pay tax on the profit, regardless if you actually received any money.