You can deduct any expense that is both "ordinary" and "necessary" in connection with the income you earned. If this staff is somehow connected to the income you earned, why not deduct the bonuses you paid to them? You can either go with the reason you gave in your question, or perhaps you could argute that these staff members allow you to free up some time to earn the consulting income.

Keep in mind when you file your tax return, you'll most likely include a Schedule C-EZ to report your few thousand dollars of consulting income and the related expenses you are deducting. The Schedule C-EZ is a 3 line form. On line 1 you put your income. On line 2 you put your total expenses. And on line 3 you put your net income. So the IRS will not know the different expenses that you included as part of line 2.

Zip Code: 01801

I give christmas bonuses to ancillary folk that make my hospital life easier...

it is my understanding that corporations can make gifts - and that is what i classify them as... also, i keep the gifts at below $600, otherwise you'd have to give them a 1099

Zip Code: 02891