SusanY1
Expert Alumni

Business & farm

You cannot deduct the value of your unbilled time, because there is no corresponding income to deduct it from.   

 

If you were paid income and then had to pay out the fees, that would be a different scenario because you would pay tax on the income and a deduction would lower that tax.  Here, there is no tax to lower because no income is being taxed in the first place.  

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