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Paying contractors in cash

Varies

Can You Write Off Paying Contractors in Cash?

Short answer: Cash payments to contractors are deductible with records, and you must send a 1099-NEC once you pay someone $2,000+ in 2026.

Get a W-9 before paying.

Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose. W-2 employees should ask about employer reimbursement.