Is a subcontractor on a client project line 11 or line 26?

If you control how and when the work gets done and supply the tools, the worker is an employee and the pay is wages on line 26 with payroll tax.

Is a subcontractor on a client project line 11 or part iii line 37?

Contract labour that goes into products or inventory you sell is Part III line 37 cost of labor, which feeds cost of goods sold instead of line 11.

Where do subcontractors go on Schedule C? Line 11

Short answer Schedule C, Line 11 Contract labor

A subcontractor on a client project belongs on Line 11, contract labor.

Why line 11

Line 11 is for amounts paid to people you do not treat as employees, which is exactly what a subcontractor is: they set their own hours, use their own tools and invoice you. Deduct what you actually paid during the year if you are on the cash method, even if the client has not paid you yet. Two facts move the number off this line: if the sub's work went into goods or inventory you sell, it is Part III cost of labor, and if the sub built something with a life beyond this year, the cost is capitalised.

Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so a subcontractor on a client project lands on Line 11 without you sorting it.

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What a subcontractor on a client project is confused with

Line 26, wages: If you control how and when the work gets done and supply the tools, the worker is an employee and the pay is wages on line 26 with payroll tax.
Part III line 37, part iii line 37, cost of labor: Contract labour that goes into products or inventory you sell is Part III line 37 cost of labor, which feeds cost of goods sold instead of line 11.
Form 4562, form 4562, carried to schedule c line 13: If the sub built a long-lived asset, such as a structure or a system you will use for years, the cost is capitalised and depreciated on Form 4562.

Examples that belong on line 11

4,500 dollars to a licensed electrician on a renovation you were hired for
1,800 dollars to another consultant who delivered one workstream of your engagement
A 900 dollar invoice from a translator on a client's localisation job
2,000 dollars to a second van and driver for a week of overflow deliveries
600 dollars to a copywriter who wrote pages for your client's site

What does not belong here

W-2 wages for anyone on payroll, which are line 26
Your own labour or owner draws, which are never deductible
Reimbursed materials the sub bought, if you also deducted the materials separately
Amounts you accrued but had not paid by December 31 on the cash method

The limit that applies

For payments made in 2026 and later, Form 1099-NEC is due at 2,000 dollars or more per payee for the year, up from 600 dollars before 2026. The expense is deductible whether or not the form was filed.

What to keep

Keep each subcontractor's invoice, proof of payment, a signed Form W-9 and the agreement showing they control their own work. The W-9 is what lets you file the information return and what answers a worker classification question.

Other expenses on line 11

Expense	Line
a freelance developer or designer	Schedule C, Line 11
a freelance editor or bookkeeper	Schedule C, Line 11
a freelance photographer	Schedule C, Line 11
a staffing agency invoice	Schedule C, Line 11
a virtual assistant	Schedule C, Line 11
a website bug fix by a contractor	Schedule C, Line 11

Related lookups

Sources

This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.

Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.

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