My wife has a friend she pays about $500 year to help with her business. She does not issue a1099 form. Can we deduct this expense? Thanks.

[Marketstar · Accepted solution]

Yes, if the friend in question is not a W-2 employee, you can claim her as Contract Labor to be entered in the following area.

To report your business expense in TurboTax:

Type in schedule c in the search box, top right of your screen

Click on the first category Jump to schedule c link

Follow the prompts and online instructions

Arrive at the Your Business page

Scroll down to the Business Expense category

Click start or update next to Other Common Business Expenses category

Arrive at the Let's write off some business expenses page

Scroll down to the Contract Labor category to make your entry.