If I was paid by a company and then used part of that payment to pay subcontractors, how do I deduct their earned income from my earned income when I file my taxes?

[AnthonyC · Accepted solution]

You will include all of the income you received from the company, but then subtract out the amounts you paid to subcontractors as Contract Labor expense.

If you need to get back to your self-employed income/expenses for Schedule C follow the instructions below -

• Log into your account and click Take Me To My Return (you must click this before searching if you are not already in your account)
• Type “Schedule C" in the search box, top right of your screen, then click the magnifying glass
• Click the "jump to schedule c" ink in the search results.
• You will arrive at the Your Business summary page where you can add/edit a business
• Follow the onscreen instructions to enter your business income and expenses
• When you get to Business Expenses - select Add an Expense and you may need to scroll down to Less Common Business Expenses and open up the full list
• Choose the Contract Labor option from the list (see screenshot)
• Enter the amounts you paid out for contract labor