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    Magz108's Avatar
    Magz108 Posts: 4, Reputation: 1
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    #1

    Jan 25, 2013, 01:45 PM
    Are owners draws taxable
    Are owners draws on an incorporated company taxable by 1099? They do not draw a salary
    Magz108's Avatar
    Magz108 Posts: 4, Reputation: 1
    New Member
    		  
    #2

    Jan 25, 2013, 01:52 PM
    Owners draws
    Are owners draws on an incorporated company taxable? They do not receive payroll, 1099?
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
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    #3

    Jan 25, 2013, 02:24 PM
    You pay taxes on the draw on your personal 1040. You should be on the company payroll if you are incorporated.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Jan 25, 2013, 02:38 PM
    Yes, the draw IS taxable.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #5

    Jan 25, 2013, 09:04 PM
    A draw is a paycheck, they may not be trying to call it one, but that is what it is.
    They need to sit down with the accountant that is doing the taxes and set this up properly as a salary so that proper taxes are paid on it.
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