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Level 2
posted Feb 27, 2023 2:20:19 PM

Business income reported on W2

I have business income that was reported on a W2. There is no place in TurboTax in the business section to report W2 income. Is there a way to circumvent this issue?

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1 Best answer
Level 15
Feb 27, 2023 3:33:49 PM

Did they take out Social Security & Medicare taxes in boxes 4 & 6? You should have noticed they were paying you as an employee not as independent contractor and taking deductions.   Sorry you have to report it under Wages and not on Schedule C.  

But yes ask them about it.  

4 Replies
Expert Alumni
Feb 27, 2023 2:40:51 PM

Form W-2 reports wages and salaries paid to you as an employee, along with other information such Federal and state withholding taxes, Social security and Medicare taxes and other retirement information.

 

It does not report business income. Amounts paid to you as a self-employed person or a business entity are reported on form 1099-NEC as Non-employee compensation.

 

Please read this TurboTax article for more information.

Level 2
Feb 27, 2023 3:27:25 PM

In my case, the company that I did work for, issued a W2 instead of a 1099-NEC. Is the only way to correct this is to have the company issue a corrected W2 with no wages and a new 1099-NEC?

Level 15
Feb 27, 2023 3:33:49 PM

Did they take out Social Security & Medicare taxes in boxes 4 & 6? You should have noticed they were paying you as an employee not as independent contractor and taking deductions.   Sorry you have to report it under Wages and not on Schedule C.  

But yes ask them about it.  

Level 2
Feb 27, 2023 3:53:36 PM

Medicare- yes. Social Security- no (because it is a School District).

I will leave it alone since it will be too difficult to correct at this time.

Thank you very much for your input!