Sole Proprietorship question on 1040 Schedule C

JoeG1JoeG1 subscriber Posts: 1
edited January 2008 in Accounting and Financial Management
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!
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Comments

  • KevDevKevDev subscriber Posts: 5 Member
    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!
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  • JoeG1JoeG1 subscriber Posts: 1
    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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