MinhT
Expert Alumni

Deductions & credits

If the owner of the business only report on form 1099-MISC the net amount he paid you ($12,600 in your example), then you cannot deduct the part that he kept as your business expense. The simple reason is that you did not pay that amount and you only report the net amount on your tax return.

If you have other business expenses (such as supplies, travel expenses...), you can deduct them from your income.

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