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New Member
posted Oct 30, 2019 4:38:46 AM

How do I deduct costs to pay contractors for self-employment?

I'm a self employed individual (no company) that has to regularly hire artists as contractors to produce material that I use in what I produce and sell, as well as printing costs. I need to be able to write off my costs for these contractors. Last year, while I was filling in my self-employed business income, I was given options for putting these costs in. This year, I can't find any such information. Where should I be filing these things in? My industry code, if it helps, is 511120.

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1 Best answer
Level 11
Oct 30, 2019 4:38:47 AM

The spot to enter subcontractors' costs can be located in the Valuing Inventory section of the T2125. This screen is found directly after the Business Income section. Enter your subcontractor costs on the line marked "Subcontracts : Enter all the costs of hiring outside help to perform work related to the goods you sell."


14 Replies
Level 11
Oct 30, 2019 4:38:47 AM

The spot to enter subcontractors' costs can be located in the Valuing Inventory section of the T2125. This screen is found directly after the Business Income section. Enter your subcontractor costs on the line marked "Subcontracts : Enter all the costs of hiring outside help to perform work related to the goods you sell."


Returning Member
Apr 2, 2023 4:32:21 PM

Can not find it, please clarify. 

Moderator
Apr 8, 2023 12:38:22 PM

@bassemomary Are you using TurboTax CD/Download or TurboTax Online?

New Member
Apr 10, 2023 8:10:51 AM

I also have the same question! I am using Turbo Tax Online.

Moderator
Apr 14, 2023 11:54:14 AM

In TurboTax Online, you can enter subcontractor expenses in the Inventory section, just after Income.

 

New Member
Apr 18, 2023 12:58:20 PM

Sub contractor does not come up as an option for me under work expenses

 

Moderator
Apr 21, 2023 10:11:43 AM

@Canadork It's not under expenses. You can enter subcontractor expenses in the Inventory section, just after Income.

New Member
Apr 29, 2023 9:29:21 AM

@TurboTaxSusan - there is no "Inventory" option after the "Income" section

 

Moderator
Apr 30, 2023 2:38:38 PM

@CandianTaxpayer

You have to go to the Self-Employment section, then go into your business (or create one) to see the Inventory part of the Self-Employment section.

New Member
May 6, 2023 1:48:36 PM

Hi,

 

No matter how I try to get to the Inventory section in which I could supposedly enter all subcontractors' fees, I am unable to get to it.

Level 15
May 8, 2023 11:05:51 AM

Can you please let us know if you are using TurboTax Online or TurboTax CD/Download?

 

Thank you for choosing TurboTax.

New Member
Jun 15, 2023 10:21:48 PM

Agreed! This page (subcontractors) does not show up for me either! Please advise

 

(using online version)

Level 1
Apr 3, 2024 12:46:04 PM

Please update on where to find this. I'm having the same issue currently. 

Moderator
Apr 3, 2024 1:09:40 PM

@jnsalmon Payments to subcontractors goes into the Inventory section. If you don't see the option for inventory, then you chose "Professional" as your business category, instead of "Business". You would need to delete the business and start a new one to change the category.