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@ea_rva aka acctgtaxmatters wrote:

 Or maybe the better question is where is it written that you cannot deduct subcontractor expenses if they were not reported as income to the subcontractors?

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There is no such rule.  You certainly can take a deduction for any valid expenses, regardless if a 1099 or W-2 was issued.

The bigger problem is if they do qualify as Household Employees, your client is responsible for the payroll taxes on that employee.  Social Security and Medicare is 15.3%, Federal Unemployment is between 0.6% and 6.0%, plus State unemployment.