If I paid subcontractors $9000, why when I enter it under "Contract labor" does it only reduce my "tax due" by about $2000? Their work didn't increase my profit.

[chrstphs]

Their payments were really just a pass-through from the client to them, and wasn't an advantage to my profit.  For a 1065, where else can I enter subcontract payments to get a 100% deduction?

[AmeliesUncle]

It is not showing up as a $9000 deduction? 

You aren't expecting your" tax due" to change by $9000, do you?  The IRS is not going to pay your contractors for you.  The $9000 deduction just means that $9000 is not subject to income tax.