topic Re: Statutory Employee in Get your taxes done using TurboTax

Statutory Employee

Mb2023 — Mon, 23 Feb 2026 13:59:22 GMT

This is the first year I have been considered a statutory employee, I have worked for my employer (state government) for 8 years, they assure me it was not an accident. Turbo tax wants me to fill out tax forms as if I were a business (business name, type of business, accounting method etc.) except I have always filed taxes as an employee until I got my W2 a couple weeks ago. Where do I go from here?

Re: Statutory Employee

PattiF — Tue, 28 Mar 2023 01:08:45 GMT

To clarify your question, did you get a W-2 or a 1099-NEC?

Re: Statutory Employee

Mb2023 — Tue, 28 Mar 2023 01:15:17 GMT

W-2 with the Statutory Employee box selected.

Re: Statutory Employee

KrisD15 — Tue, 28 Mar 2023 01:27:36 GMT

You will need to file Schedule C like a Self-Employed Taxpayer.

Because your "employer" paid part of your FICA tax, you receive a W-2, but you are also allowed to claim job expenses.

A "Statutory Employee "is really a mix of part employee - part independent contractor.

HERE is a link to explain more.

Re: Statutory Employee

Mb2023 — Tue, 28 Mar 2023 01:35:03 GMT

I understand the schedule C, but why does the tax software want a business name, type (sole proprietorship, partnership, etc) accounting type (cash, other) business name….I don’t actually have answers to these questions. As I am not a business, I am for sure an employee.

Re: Statutory Employee

DawnC — Tue, 28 Mar 2023 02:08:04 GMT

The only way you can claim your expenses as a statutory employee is to file Schedule C. And TurboTax will require that information for any schedule C prepared in TurboTax. For your expenses, assume you are an independent contractor and answer the set-up questions accordingly. Use your name and your home address and cash basis accounting. Schedule Cs are for sole proprietors - neither members of partnerships, nor S-corp stockholders use Schedule C.

You are an employee for purposes of filing your W-2 and you are a self-employed business owner for purposes of your statutory expenses and Schedule C. Refer to the Salesperson section located in Publication 15-A, Employer's Supplemental Tax Guide for additional information.

Re: Statutory Employee

Mb2023 — Tue, 28 Mar 2023 02:21:33 GMT

I think I follow, I will give it a try. Thanks

Re: Statutory Employee

LindaS5247 — Tue, 28 Mar 2023 02:52:59 GMT

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 jobs.

Note: The information from your W-2 has to link with your Schedule C.

On the screen where you entered your W-2 hit Continue.

There will be a series of questions and it will come to
BOX 13 on W-2
There are several options to choose from
Next screen Do you have any business expenses to this income?
Answer YES
It will ask for the description of your business
This will link you to your Schedule C

You may have to delete and reenter your Form W-2 to do this.