Schedule C Line 1F W2 Statutory income cannot be reported on the same form as other business income is appearing. The only business income on this Schedule C is the Statutory employee income. The error prevents me from filing the return.
Do you have a Box 13 Statutory Employee checked when you entered the W-2?
If it is checked on your physical W-2, then see the information below. If you accidentally checked it when entering the information, go back to uncheck it. If the trouble continues, delete the W-2 and then re-enter it.
Statutory employees are a very special designation and have their own special rules. If you are a statutory employee, you can claim certain business-related expenses on Schedule C instead of Schedule A. This means you get a bigger tax deduction than traditional employees.
Statutory employees are considered both independent contractors and regular employees. Most people are regular employees - they work for an employer and the employer says what job will be done and how to do it.
Statutory employees have been declared employees under federal tax laws, but are independent contractors under common law. These workers are usually working salespeople or have commission based employment.
The information from the W-2 has to link with your Schedule C
- In TurboTax Self-Employed Online, go to Wages and Income and enter your W-2.
- TurboTax CD/Download use Personal Tab > Wages and Income
- Make sure that Box 13 'Statutory Employee' is checked.
- Answer the questions on the subsequent screens until you get to:
- "Any Related Business Expenses?" Click "Yes".
- Go through the interview questions.
- Your W-2 Income is now linked to Schedule C.
For 2020, 1 have 1 W2 and 2 1099-NEC that I have entered on TurboTax. I can't move past review as it gives me this error message:
Line 1f: W2 Statutory cannot be reported on the same Schedule C as other business income. Either remove any amount entered for statutory employee income or unlink the W-2 worksheet from this copy of Schedule C and link it to a different Schedule C.
I deleted the W-2 and manually re-input, still getting error message, Please advise