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W2 Statutory income cannot be reported on 2023 return

I have one W2 on this return and the statutory box is NOT checked.

 

I also have a Schedule C for other income earned elsewhere. Turbox Tax has assumed the Schedule C is for the W2 individual and is throwing an error that "W2 Statutory income cannot be reported on the same Schedule C as other business income. Either remove the amount entered for statutory income or unlink the W2 worksheet from this copy of Schedule C and link it to a different Schedule C".

There is no entry for Statutory Income.

Please help.. How do I "Unlink" this erroneous form?

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2 Replies
KrisD15
Expert Alumni

W2 Statutory income cannot be reported on 2023 return

Statutory Employee is a selection in Box 13 on a W-2.

This is also where Retirement Plan and Third-Party Sick Pay is indicated.

 

If you typed in the W-2, please return (edit) that W-2 to see if the checkmark was misplaced.

If the W-2 was imported, please delete it and manually type it in. 

 

  • For TurboTax Desktop, switch to Forms (Upper right corner) 

  • To Delete a Form  using TurboTax Online:
    Select Tax Tools on the left side-bar
    Select Tools from that drop-down
    Select “Delete a form” on the TOOLS CENTER screen
    Select the Form W-2 and delete to remove 

Re-enter the W-2 


 

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W2 Statutory income cannot be reported on 2023 return

So, I was on the phone for about 95 minutes with a Turbo Tax Support Specialist (screen shared) and was unable to resolve the issue.  I was told they would “escalate and get back with me in five days”.  
Within minutes of ending the support session I received an email from them telling me the request was closed due to insufficient information!

Really!  Possible bug in their software and they apparently could care less.  The email box is not monitored and reply was not possible.  

Realizing I was on my own, I deleted the W2 which was not even related to the Schedule C.

Saved the file.

Closed Turbo Tax

Restarted Turbo Tax and updated the Schedule C.

Re-entered the data for the W2 and Voila! It no longer saw the erroneous Statutory Wages error. 
I have since submitted my Federal and State Taxes.

 

I am very dissatisfied and disappointed that Turbo Tax treated me as an unimportant customer.  I paid for the application and seemingly there is a bug in how Turbo Tax handles Schedule C’s when there is an unrelated W2.  

Others have complained but Turbo Tax chooses to ignore the problem because they already collected their money!

 

 

 

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