If the IRS Form W-2 Wage and Tax Statement
you received from your employer has the checkbox marked for Statutory employee
, that income needs to be reported on Schedule C Profit or Loss from Business for Statutory Employees
. If you marked the box in error, uncheck it and the wages will then be reported on Line 7 of IRS Form 1040 U.S. Individual Income Tax Return
Enter your W-2 information in the Wages and Salaries
section of the program, or directly on the Form W-2. Check the box for statutory employee under Box 13 and your wages will then automatically transfer to Schedule C.
To Review Box 13 Data on Form W-2:
- From within your TaxAct® return (Online or Desktop) click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Wages and Salaries to expand the category and then click Wage income reported on Form W-2
- Click Add to create a new copy of the form or click Review to review a form already created
- Click Step-by-Step Guidance
- Continue to the fourth screen, titled Wages - W-2 - Information, where you can check or uncheck the box on the left side of your screen below the Box 12 entries
To Enter Statutory Employee Income and Expenses:
- From within your TaxAct return (Online or Desktop) click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Business Income to expand the category and then click Income and expense for statutory employees
- On the screen titled Statutory Employee, click Review for the applicable Federal Schedule C - Statutory Employee
- The program will proceed with the interview questions for you to enter or review the appropriate information
Per the IRS Schedule C Instructions
, page 5: Statutory employees.
If you received a Form W-2 and the "Statutory employee" box in box 13 of that form was checked, report your income and expenses related to that income on Schedule C or C-EZ. Enter your statutory employee income from box 1 of Form W-2 on line 1 of Schedule C or C-EZ and check the box on that line. Social security and Medicare tax should have been withheld from your earnings; as a result, you do not owe self-employment tax on these earnings. Statutory employees include full-time life insurance agents, certain agent or commission drivers and traveling salespersons, and certain home workers.
If you had both self-employment income and statutory employee income, you must file two Schedules C. You cannot use Schedule C-EZ or combine these amounts on a single Schedule C.