Help a newbie - entering sole proprietor income

What kind of LLC is it?  Did you elect to be an S corp? 

If you have a Single Member LLC that is not an S corp it is a disregarded entity and you gpfile it on Schedule C in your personal tax return.  You do not expense the amounts you paid yourself.  

Sole proprietors cannot take a withdrawal or salary and include it as an expense on their tax return. As a sole proprietor, you are not an employee of the business. You don't pay yourself or enter a salary or withdrawal for yourself. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income.  If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.

You pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C.  You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400).  The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.  So you get social security credit for it when you retire.  

The SE tax will be included in your tax due or reduce your refund.  It is on the 1040 Schedule 2 line 4 which goes to 1040 line 23.  The SE tax is in addition to your regular income tax on the net profit.  You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040 Schedule 1 line 15 which flows to 1040 line 10.

We have several items here to discuss as you listed above.  First as a single member LLC, it looks like you do understand that you need to file a Schedule C.  On the Schedule C list the LLC's name and TIN even though it is considered a disregarded entity.

Next on the list is your Owner's Draw.  No the $80K you listed is not what you claim as income from the Schedule C.  The income that flows to the return for tax purposes is the NET income shown on Line 31 of the Schedule C.  Whether you take $1 or $100,000 as a draw, the taxable income from the Schedule C is the amount that shows on Line 31.

Your Quarterly estimates, are based on your total income from all sources which includes the net income from your Schedule C.

Your Self-Employment tax is equivalent to your Social Security and Medicare tax.  When one works for an employer they have SS and Medicare withheld the employer also pays an equal amount.  Your are your own employer so you have to pay both parts, which is based on 93.25% of the net of your Schedule C.

The last item, the health insurance deduction.  I would be wary of taking this if it is not specifically spelled out in any agreement. 

@bluesjumper