Question

How do I write off the expense of a subcontractor that I paid less than $600?

Forum|Forum|6 years ago
June 7, 2019
1 reply
0 views

I needed someone to work an event with me, to help speed things up, as my client asked for a second person.

I asked a friend also working the event if she knew of anyone and she referred someone to me, also giving her the wrong pay amount. I end up making $4 after the credit card fees when being paid by the client.

The subcontractor is being paid less than $600. How do I write off this expense, and will it be fully deducted, or only a percent, causing me to lose money on this "venture"?

TurboTax Self Employed Online

VolvoGirl

Employee

Yes you can expense it.

Go to Business tab- then Continue
Business Income and Expenses - Click the Start or Update button

If you haven't added a business yet you have to go though a lot of screens describing your business.  Or if you already added your business, you should see the Business Summary page that lists your businesses, (right below the list you can Add Another Business)

Then click EDIT by the business name and the next screen should be a list of  topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Under Business Expenses, Click Start or Update by Other common business expenses
Contract Labor is the 5th item in list.