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New Member
posted Jun 1, 2019 12:35:00 AM

I paid random day laborers $400/wk to help in my business. Do I need to add helper and $400 52 times to my labor expenses since I used a different laborer every week

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1 Best answer
Expert Alumni
Jun 1, 2019 12:35:03 AM

No. You don't itemize your expenses in such great detail. The IRS only wants a total, as only 1 number goes on the return for this category. You should have the detail for any of your expenses, but you should only list total figures inside Turbo Tax. Your tax return breaks down your expenses into categories, but is not detailed like bookkeeping would be.

4 Replies
Expert Alumni
Jun 1, 2019 12:35:03 AM

No. You don't itemize your expenses in such great detail. The IRS only wants a total, as only 1 number goes on the return for this category. You should have the detail for any of your expenses, but you should only list total figures inside Turbo Tax. Your tax return breaks down your expenses into categories, but is not detailed like bookkeeping would be.

New Member
Jun 1, 2019 12:35:10 AM

Will atm withdrawls be enough proof if I get audited?

Expert Alumni
Jun 1, 2019 12:35:13 AM

Not by themselves. You would hold on to records showing the info of the people you paid. Also, it should be reasonable to expect that you did such a thing, and that would depend on the nature of your business. You are not required to write people checks, but you should provide documentation like a log, just like you would with a car and mileage.

New Member
Mar 28, 2020 8:29:42 AM

Where do you enter this at?