Most of the replies on here assume that someone has mistakenly checked the W-2 Statutory Employee checkbox and thus incorrectly linked a Schedule C to this W-2. They talk about unchecking the W-2 box.
My problem was different. I had a non-Statutory Employee W-2 and a Schedule C (from a 1099-NEC) that somehow linked themselves. It was impossible to uncheck the box on the income portion of the Schedule C and my forms did not pass error checking. i.e., My W-2 does not have Statutory Employee checked in box13, but Turbo Tax has it linked to my Schedule C, line 1.e. which has a zero showing on that line, and calls the W-2 out as saying that I am a Statutory Employee. The comment reads "Schedule C (Research Consulting): Line 1e: 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."
After deleting my W-2 twice and re-importing it, and considering the bypass command to uncheck the box, I came across a solution that worked for me.
SOLUTION:
Userajgano8
identified the solution. In July of 2020, she posted this solution.“I had the same issue and was able to resolve it by deleting the "0" value that had been entered into the cell. Essentially, if you are getting this error and you already double checked to ensure the "Statutory Employee" box is NOT checked on your W2, you need to make sure there is no value in section 1e of your Schedule C otherwise TurboTax will flag an error.”
Intuit: you should be ashamed of yourselves for allows this bug to occur and persist or not making its solution clear.
Please upvote this post if it has been helpful.
I'm afraid this didn't work. In the 2021 version, cell 1e is the total for all receipts or sales. I have gross receipts in line 1a (no W-2's) that flow to that line. I have tried taking out the zero on line 1f, but that still allows cell 1g to request that the box be check for a statutory employee.