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Yes. Schedule C is Profit or Loss from Business. Contract labor wages are reported on Schedule C (or Schedule C-EZ) as income by the recipient and deducted as expenses by the payer. The payer deducts contract labor as a business expense in Part II Expenses and/or Part III Cost of Goods Sold. The recipient reports contract labor wages as income in Part I Income.

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Q: Do you have to claim contract labor wages on an income tax form?
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