If you are a sole-proprietor and made payments to other subcontractors, you can report those amounts in your business expenses under the category "Contract Labor." You should also issue your friend a 1099, if it was for more than $600.
Here's how to navigate there in TurboTax Online:
- Use the magnifying glass on upper right, type "Schedule C" and click the first option in the search result, "Jump to Schedule C"
- Choose edit or add the business
- Choose "Add expenses for this work"
- Scroll down to "Less Common", use the search feature and type "labor", or page until you get to "Contract Labor"
Here is some information you may find helpful: A Guide to Self-Employment Taxes for Contractors, Freelancers, and Beyond
