My employer marked me as an statutory employee and I don't understand how to select the copy of schedule c I'm not even sure why they marked me down as statutory help?

[PatriciaV · Accepted solution]

Essentially, a statutory employee is one who, under traditional legal standards would be considered to be an independent contractor but under the tax code is treated to some extent like an employee.  The classic example is an sales representative (like an insurance agent) who works only for one company and sets up his or her own office away from direct company control.

See this link for an in-depth discussion: Reporting Statutory Employee Income

If you are still not sure why your employer considers you to be a statutory employee, contact your personnel office for additional assistance.

If you have expenses related to your work, you can include those expenses as business expenses on Schedule C. You may have a home office, vehicle expenses, or other costs that had been previously paid by your employer.

The easiest way to to find Schedule C in TurboTax is to use the Search box at the top right side of the TurboTax header. Enter "schedule c", hit Enter, then click "jump to schedule c". This will take you directly to the start of this section. You will be prompted to upgrade if necessary.

Choose the "Guide Me" option or "View All" to work through all the interview questions regarding your business. TurboTax will create Schedule C with your statutory employee income and the expenses you enter.

Note that as a statutory employee, you are not subject to Self-Employment Taxes on your business income.