Sole Proprietorship question on 1040 Schedule C

JoeG1
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Joined: Tue Jan 29, 2008 5:00 am

Sole Proprietorship question on 1040 Schedule C

Postby JoeG1 » Tue Jan 29, 2008 1:15 pm

As a sole proprietor, I pay myself like a Contractor and issue myself a 1099-MISC.  Do I include these payments as a deduction in Line 11 of 1040 Schedule C?  If so, does the 1099-MISC get reported somewhere else in the tax return?  Thank you!

KevDev
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Joined: Mon Nov 19, 2007 5:00 am

RE: Sole Proprietorship question on 1040 Schedule C

Postby KevDev » Tue Jan 29, 2008 5:26 pm

Joe: Linda is right in her description of how sole proprietors pay themselves.
If you have been paying the way you`ve described, you have almost certainly have been paying the incorrect amount of tax. I`m not an accountant, but I would suggest you call one.
Good luck!

JoeG1
Posts: 0
Joined: Tue Jan 29, 2008 5:00 am

RE: Sole Proprietorship question on 1040 Schedule C

Postby JoeG1 » Tue Jan 29, 2008 6:49 pm

Thank you for the responses.
The 1099 is superfluous, so ignoring it on Schedule C should accurately reflect the profit for the year and ensure that I am paying the correct taxes.  I will skip the 1099 next year.
 
Thanks again.


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