Contract Labor & Freelancers
Editors, thumbnail designers, virtual assistants, and other freelancers.
Tax Form
Schedule C, Line 11
Estimated Savings
$500-50,000/year
IRS Reference
Instructions for Form 1099-NEC
Income Level
How It Works
Payments to freelancers and contractors who help with your content creation business are fully deductible. This includes video editors, thumbnail designers, virtual assistants, social media managers, writers, and any other independent contractors. You must issue Form 1099-NEC to contractors paid $600 or more.
IRS Rules & Requirements
- Payments to independent contractors are deductible
- Must issue 1099-NEC if you pay $600+ to any contractor
- Keep records of all contractor payments
- Contracts or agreements should document the work
- Payments via PayPal, Venmo, etc. still require 1099-NEC
Real Examples
Video editor paid $500/month = $6,000/year deduction
Thumbnail designer paid $50/video × 100 videos = $5,000 deduction
Virtual assistant at $1,000/month = $12,000/year deduction
Common Mistakes to Avoid
- Not issuing 1099-NEC forms when required
- Forgetting to deduct smaller freelancer payments
- Not keeping records of contractor work performed
- Misclassifying employees as contractors
Pro Tip
Collect W-9 forms from all contractors before paying them. This makes issuing 1099-NEC forms at year-end much easier.
Related Deductions
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