Form W-2 - Statutory Employee

If the Statutory employee box is checked on your Form W-2, the income needs to be reported on Schedule C Profit or Loss from Business for Statutory Employees.

Enter your W-2 information in the
Wages and Salaries section of the program. Check the box for statutory employee under Box 13 to automatically transfer your wages to Schedule C.

To Review Box 13 Data on Form W-2

See Entering in Program - Form W-2.

Continue to the Enter any information listed in boxes 12-13 screen, where you can check or uncheck the Statutory employee checkbox on the bottom left side of the screen. 

To Enter Statutory Employee Income and Expenses

  1. From within your TaxAct return (Online or Desktop) click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Business Income in the Federal Quick Q&A Topics menu to expand the category and then click Income and expense for statutory employees
  3. On the screen titled Statutory Employee, click Review for the applicable Schedule C - Statutory Employee
  4. The program will proceed with the interview questions for you to enter or review the appropriate information

Additional 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. Enter your statutory employee income from box 1 of Form W-2 on line 1 of Schedule C 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 combine these amounts on a single Schedule C.