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New Member
posted Jan 6, 2025 8:25:38 AM

What is the difference between marking a business expense "excluded" vs "personal". This year I paid myself by writing business checks to a personal account.

Those expenses are coming up as "contract labor" (deductible) and I want them to not come up as business related expenses

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1 Best answer
Level 15
Jan 6, 2025 12:03:49 PM

@leducconstructionco   You are a Single Member LLC.   When you set it up did you elect it to be an S Corp?  If not then it is a disregarded entity and you file it on Schedule C in your personal tax return like your wife’s.   Be sure to pick the right spouse for each Schedule C.   

Were you asking about importing from Quicken or QuickBooks?  What Turbo Tax version are you using?  Online browser version or the Desktop installed program?  

If you are not an S corp, you cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.

6 Replies
Level 15
Jan 6, 2025 8:27:20 AM

What?   Please explain further.  Is your business a sole proprietorship or is it set up another way, like as an S-corps?   

Level 15
Jan 6, 2025 8:29:00 AM

If you are self-employed and report your income and expenses on Schedule C, you do not report any type of "draw" you made to pay yourself.  You only report your Net income (SE income minus SE expenses)

New Member
Jan 6, 2025 8:32:24 AM

I am set up as a single member LLC

New Member
Jan 6, 2025 8:35:07 AM

Okay, so maybe Intuit started me down the wrong form for filing my income (1099-NEC). I'll file jointly with my wife who is also self employed, but my income is through the LLC of which I am the sole member. 

Level 15
Jan 6, 2025 8:39:22 AM

Right, you do not issue yourself a Form 1099-NEC,  That would only issued to other contractors who provide a service to your business.

Level 15
Jan 6, 2025 12:03:49 PM

@leducconstructionco   You are a Single Member LLC.   When you set it up did you elect it to be an S Corp?  If not then it is a disregarded entity and you file it on Schedule C in your personal tax return like your wife’s.   Be sure to pick the right spouse for each Schedule C.   

Were you asking about importing from Quicken or QuickBooks?  What Turbo Tax version are you using?  Online browser version or the Desktop installed program?  

If you are not an S corp, you cannot deduct your own salary or any personal withdrawals you make from your business. As a sole proprietor, you are not an employee of the business.