Statutory employee with w-2 & 1099. How do I file? it creates one schedule c, same ein...

[Coleen3]

It is supposed to. Statutory employees can report their income via W-2 and take expenses on Schedule C.

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 somewhere in between 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 work salespeople or have commission-based jobs.

The information from the W-2 has to link with your Schedule C

1. In TurboTax, go to Wages & Income and enter your W-2.
2. Ensure that Box 13 "statutory employee" is checked. 
3. Answer the questions on the subsequent screens until you get to:
4. "Any Related Business Expenses?" Click "Yes". 
5. Go through the interview questions. 
6. Your W-2 Income is now linked to Schedule C.

[Jessie28]

You should be creating 2 separate Schedule C's- One for your statutory W-2 income and the other for your 1099's per the IRS code.  You will allocate your expenses between the two schedule C's. This is NOT an unusual situation. It is very common for insurance agents/ some financial advisors through certain companies.  I am a CPA and the information provided in this link is not clear. 

If you have this situation and are not sure what to do, I highly recommend seeking out a CPA or actual accounting professional!

TurboTax may be great for certain things like smaller returns but based on the answers to these questions.... this is out of the scope of their knowledge.