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.

Forum|Forum|1 year ago
January 6, 2025
2 replies
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Those expenses are coming up as "contract labor" (deductible) and I want them to not come up as business related expenses

Best answer by VolvoGirl

@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.

xmasbaby0

Employee

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

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

leducconstructioncoAuthor

I am set up as a single member LLC

DoninGA

Employee

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)

leducconstructioncoAuthor

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.