For 1099 contractors & freelancers
Yes, payments to other contractors for work on your business are deductible as contract labor.
Schedule C, line 11 (Contract labor).
Designers, developers, editors, virtual assistants, or anyone else you hire as an independent contractor count.
You may need to send them a Form 1099-NEC: for payments of $600 or more made in 2025, or $2,000 or more made in 2026. Payments made through a card or payment app are generally reported by the platform on Form 1099-K instead.
Invoices, payment records, and each contractor’s Form W-9.
In Smart Deductions, this is suggested as Contract Labor (Schedule C line 11). You confirm it before it counts.
Sources
General information, not tax advice. For your specific situation, check with a CPA or Enrolled Agent.