Business/Farm Supplement Help

Paying for College
1

<p>Can someone please help me understand the Income and Expenses section? My husband has a sole-proprieter business without any assets, property or employees. He takes all of his income as salary. We're having trouble with section 13 of the income and expenses section. How does he show money paid to himself as salary? It's not W-2 income, at least I don't think it is. As for line 13G, would that include something like mileage? That's his only business expense. </p>

<p>I gave DH the form a month ago and lets just say he dropped the ball and now we're up against the deadline. Any help is very much appreciated.</p>

2

<p>Does he generate a 1099 for himself rather than running a payroll? If so, that would probably be listed under "All other salaries and wages" since he's not generating a W-2 for himself. And if he fills out a Schedule E or Schedule K-1, then the net income (or loss) would go on line 13G, excluding his salary which you've already reported on line 13f.</p>