For a single member photography business, I occasionally use 3rd party photo editing service before delivering prints to some clients. Will the payments to the photo editing service be entered in Turbotax as Cost of Labor (Line 37 in Sch C and hence Cost of labor) or Contract labor (Line 11 in Sch C).
And related note, a higher CoGs affects Gross profit. Is there any tax implication of that?
Thank you
