How do I reduce my income to reflect the expenses of payments to contractors? Inputting gross income & noting that I submitted a 1099misc doesn't bring down my net income

[IreneS · Accepted solution]

Enter the amount of the payments to your contractors in the expenses section.

You can show the expense on your Schedule C by following these steps:

1. Click on Income and Expenses and then click the Start/Revisit box in the Self-Employment section.
2. On the Your 20XX self-employed work summary screen, click on Edit next to your business. 
3. On the Here's your [business] info screen, click on the box Add expenses for this work.  
4. On the Tell us about any expenses screen, scroll down to Less Common Expenses, mark the radio button for Contract Labor and click Continue at the bottom of the screen.
5. On the screen, Let's enter the contract labor expenses for your [business], enter your contract labor expenses.  Click on the link Add another row to make additional entries. 
6. Click Continue when done.

[Edited | 4/15/2020 | 11:46am PDT]