topic If I’m a sole proprietor, how do I write off payments I made to other independent contractors? in Self employed

If I’m a sole proprietor, how do I write off payments I made to other independent contractors?

jdnpiano — Wed, 28 Jan 2026 06:43:54 GMT

I received payments from customers, and then people that worked for me that were not W2 employees, how do I write those payments off through TurboTax? I don’t see where to add 1099 NEC payments I’ve made to my profile?

Re: If I’m a sole proprietor, how do I write off payments I made to other independent contractors?

MindyB — Tue, 28 Jan 2025 02:02:31 GMT

If you are a sole-proprietor and made payments to other subcontractors, you can report those amounts in your business expenses under the category "Contract Labor."

Here's how to navigate there in TurboTax Online:

Use the magnifying glass on upper right, type "Schedule C" and click the first option in the search result, "Jump to Schedule C"
Choose edit or add the business
Choose "Add expenses for this work"
Scroll down to "Less Common", use the search feature and type "labor", or page until you get to "Contract Labor"

Here is some information you may find helpful: A Guide to Self-Employment Taxes for Contractors, Freelancers, and Beyond

Re: If I’m a sole proprietor, how do I write off payments I made to other independent contractors?

VolvoGirl — Tue, 28 Jan 2025 02:04:24 GMT

If you paid anyone $600 or more you need to give them a 1099NEC (was a 1099Misc). But not to corporations or for merchandise. You send the IRS a copy of the 1099NEC with the transmittal summary form 1096. These are due to the person by Jan 31 and to the IRS by Jan 31 also.

That is Contract Labor on Schedule C line 11.

How to enter Contract Labor

https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-contract-labor/00/27407

How to create W2s and 1099

https://ttlc.intuit.com/community/forms/help/how-do-i-create-w-2-and-1099-forms-in-turbotax/00/25869

Re: If I’m a sole proprietor, how do I write off payments I made to other independent contractors?

VolvoGirl — Tue, 28 Jan 2025 02:12:09 GMT

Sorry that link doesn’t work. Try this one.

You can enter 1099NEC or cash Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version.

Where to enter expenses in the Online Premium version

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US