I paid a worker over $600 for a business expense. I stupidly did not get his SS# up front, because it didn't occur to me when I hired him that he might be an illegal tax evader who doesn't claim his income. Can I still deduct $599 of the total as a business expense if the proof of payment and invoice are actually $850? I live in a small town and it would not be wise of me to make this an issue with this worker; I need to let it go that he won't give me his social...I just want to know if I'm totally screwed on my taxes (meaning I can't deduct any of it) or only partially screwed (I can deduct $599). I don't want to do anything that wouldn't hold up in an audit. Thanks.
