Income Tax Payment on Balance Sheet

Income Tax Payment on Balance Sheet

Income Tax Payment on Balance Sheet

Why does my income tax payment not show on my end of year financial statements from my accountant?

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Dec 10, 2017
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starstarstarstarstar 		Income Taxes Paid Shown On Balance Sheet
by: Stephanie

If you are self-employed your income tax payment will show on the Balance Sheet as an owner's draw.

This is because you file your business return as a Schedule C on your federal income tax return which you are personally responsibly for.

Therefore, any payments made are considered a personal expense rather than a business expense.

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