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Can i deduct income that I paid out to a sub contractor without them having tax documentation?

This was a "helper" that I paid out of my own income, but that was not officially on any payroll, or documented on any tax forms.
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2 Replies
JamesG1
Expert Alumni

Can i deduct income that I paid out to a sub contractor without them having tax documentation?

Yes.

On your Schedule C Profit and Loss from Business, you may report as an expense the casual labor that does not rise to the $600 level for reporting an IRS form 1099-NEC. See Instructions for Forms 1099-MISC and 1099-NEC, page 7 here.

 

Specific Instructions for Form 1099-NEC File Form 1099-NEC

 

Nonemployee Compensation, for each person in the course of your business to whom you have paid the following during the year. 

 

At least $600 in: 1. Services performed by someone who is not your employee (including parts and materials) (box 1).

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Can i deduct income that I paid out to a sub contractor without them having tax documentation?

Are you reporting self employment income on Schedule C?  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

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