What is the difference between labor costs entered under cost of goods and contract labor?

[dvina5]

There are two sections for labor, one specifically says "contract labor"  the other is under cost of goods sold.  Un CoG, would the labor costs be that of myself, as owner, who makes the goods sold?

[ColeenD3]

If you manufacture items to sell, then you pay for labor to do the work. This is part of COGS. If you hire persons to do any other type of work for you, and they are not employees, then that is contract labor.

[VolvoGirl]

And anyway, NO you can not deduct your own labor anywhere.  

If you are filing a Schedule C for self employment or as a Single Member LLC or Sole Proprietor, etc. you cannot take a withdrawal or salary and include it as an expense on your tax return. You are not an employee of the business. You don't pay yourself or enter a salary or withdrawal for yourself. All the business income and expenses are your personal income and expenses in the first place. You just fill out a Schedule C. The net profit or loss is your income. If you have a net profit of $400 or more on schedule C you will pay SE self employment tax on it in addition to your regular income tax. It's all included on your personal 1040 form.

See Schedule C instructions page C-10 Line 26
Do not include salaries and wages deducted elsewhere on your return or
amounts paid to yourself.
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf