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

[ChristinaS · Accepted solution]

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.

[ottobot007]

Will atm withdrawls be enough proof if I get audited?

[ChristinaS]

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.

[Tgmf]

Where do you enter this at?