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 (if you need help accessing Form W-2 in the TaxAct program, go to our Form W-2 - Entering in Program FAQ):
To enter statutory employee income and expenses:
Per IRS Instructions for Schedule C, 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.
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