Self Employed Income on a W2?

[FGM]

I am an independent consultant (sole proprietor LLC) that normally receives 1099s from clients, but one of my clients in 2020, who I did the majority of my work for, provided me a W2 & withheld FITW, SITW, Medicare, & Social Security.  How do I report this as income as business income & take credit for the withholdings?  I am using Turbo Tax Home & Business, which applied my 1009 income for the QBI deduction but applied this W2 income as personal income & excluded it from the QBI calculation.

FGM

[VolvoGirl]

Sorry that is W2 wages and won't go on your schedule C as business income.  You need to talk to the employer about changing you to a 1099 independent contractor.  Did they just pay you one time?  You should have noticed they were taking out taxes from it.  

[FGM]

I was paid that way over a series of projects across the year & didn't realize the impact of it until I did my taxes this year & noted the QBI deduction which was only applied to my 1099-income.  The client that gave me the W2 stated, for their accounting purposes, it was simpler for them & better for me, if they applied standard payroll procedures (withheld taxes) & gave me a W2.  I receive no benefits from the company & I am free to accept or decline projects.  I have no previous employment history with the company, so this isn't a case of I was employed & then went into a part-time work status.

There is no way to manually input the income & withholdings directly onto my forms as business income & prepayment of taxes?

Thanks

FGM

[JohnH1]

No there is not. You got some benefit from this situation because your employer paid half of your Social Security income. If you try and claim it as business income your SS tax will go up. Leave it as it is.