I am self employed and own the home business and paid myself a commission monthly just by transferring it to my account. how do i file that?

Since you are Self-Employed you are creating what is called an Owner's Draw. You don't necessarily enter an Owner's Draw in the tax return. I will use an impromptu spread of a simple account ledger to explain how this amount comes into play.

• Total Business Income = $10,000.00
• Owner's Draw= $5,000
• Total Business Expenses= $3000.00
• Gross Profit of the Business= $2,000.00

The line of Gross Profit is the money that your company  you are a Self-Employed Sole Proprietor for Tax Purposes the money that you withdrew for yourself throughout the year gets put back into the Gross Profit to create a Net Profit of $7000.00.

In TurboTax you will enter the Total Income that you earned as a Sole Proprietor and all of the Business Expenses. You will not enter the transfers that you made to yourself. This will create an equation similar to the example I presented above. The difference is that instead of adding the Owner's Draw back into the Gross Profit, that money will not be entered into the equation.