Submitted By: someone
Answered: January 20, 2020 9:28 pm

I’m a sole proprietor. Can I pay W-2 wages to myself?

As a self-employed person, you cannot receive a salary. You can take a draw from your business bank account to cover your personal expenses, but this has no impact on your taxes. You are taxed on your revenue minus expenses; you cannot subtract the draw.

advertisement
Tax Glossary

Amended return

On Form 1040X, you may file an amended return within a three-year period to claim a refund or correct a mistake made on an original or previously amended return.

More terms