Deductions & credits

No.  You never take a deduction or business expense for the value of your own labor.***   The tax benefit of doing your own labor is that you have more profit after expenses--your expenses are lower since you did not hire someone else to do the work.

 

(Even if you could do this, you would deduct the expense on schedule C for your business and then you would need a separate schedule C for yourself as an IT person, report the income and pay all the tax on it. So the net result is exactly the same.  Just asking the question shows a gap in your understanding of the tax issues of being a sole proprietor and suggests you might benefit from some tax books or accounting classes on the subject.)

 

***If you are organized as an S-corporation, you must pay yourself a reasonable wage for all the work you do for the corporation, and pay FICA and medicare tax on it, and issue a W-2, before you can take a distribution of the profits.  You can't take the profits as a capital gain to avoid paying FICA and Medicare tax, you must pay yourself a fair wage first.  In this case, the wage would apply to all your activities for the company as its employee, not just some of the things you do.

 

But I don't think you are an S-corp asking about your W-2 wages, from the way you asked the question.