If you are an Independent Contractor and file a Schedule C then yes, you may deduct the cost of your Workers Compensation expense. You cannot however "double-dip".
If the amount that this particular company reports on your 1099-MISC is your contract amount in full {say $1000} then you can deduct your Workers Comp (WC) insurance {say $100} on your Schedule C as an expense.
If what was actually reported on the 1099-MISC was only $900 (in our example) and that's the amount you reported on your Schedule C then you couldn't also deduct the WC because you had never claimed that amount having been included as income.
The key is... if actual cash received (in our example) was $900 then you can claim $1000 in income and $100 in WC expense (Taxable $900). However, you cannot claim $900 in income and also deduct the $100 WC expense (Taxable only $800).
[updated 1/19/16 @ 1317PST]
How to get started entering the
information for your Schedule C business
In your TurboTax Home &
Business edition:
- Click the
Business tab, and Continue.
- On the
How do you want to enter your business income? screen:
- Go
through all areas sequentially by clicking Walk me through everything.
under Guide me, or I'll choose what I work on under I'll explore on my
own.
- Choose
your topics by clicking Start/Update and follow the prompts.
You can also use the TurboTax search box by
entering Schedule C and clicking on the Jump to Schedule C link.
