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If the Box 13 Statutory employee is checked on your Form W-2 Wage and Tax Statement, the income needs to be reported on Schedule C (Form 1040) Profit or Loss from Business.

To report the statutory employee income:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Wages and Salaries in the Federal Quick Q&A Topics menu to expand, then click Wage income reported on Form W-2.
  3. Click + Add Form W-2 to create a new copy of the form or click Edit to review a form already created.
  4. Continue with the interview process to enter all of the appropriate information.
  5. On the screen titled W-2: Enter Taxpayer's/Spouse's information, check Statutory employee under Box 13 to automatically transfer your wages to Schedule C (Form 1040), then click Continue.

To review Box 13 data on Form W-2, see Form W-2 - Entering in Program for more information.

To enter statutory employee income and expenses:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Business Income in the Federal Quick Q&A Topics menu to expand, then click Income and expense for statutory employees.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Statutory Employee, click Edit on the employee in question to open the applicable screens.

Additional Information

Per IRS Instructions for Schedule C, on page C-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 homeworkers.

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.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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