Can you use a schedule C to file income from a W2 that had no withholding?

[leemarkl]

My E-Filing though TurboTax was recently rejected due to error code "Reject Code FW2-505-01".   In reading up on it, the error code is due to the EIN of a W2 that was input not being created until after the tax year.   The solution in all of these cases was to file by mail.

The W2 in question covered the time frame of 6 weeks of work as a household employee at the end of Q4 2024.   There was no withholding on the W2.

To alleviate the issue of the error code would it be advised and allowed to remove the W2 information from filing and account for the income through a schedule C

[MindyB]

No, you should not do this.  Using a schedule C is for self-employed individuals so this would be an incorrect tax return.  As well, you'd be responsible for paying self-employment tax, which is double the Social Security and Medicare tax that is required.

You should file the tax return by mail.

[Mike9241 · Accepted solution]

No. The IRS is going to be looking for that W-2. You are not a statutory employee who can report W-2 wages on Schedule C. Also,  using Schedule C will subject you to Medicare and Social Security taxes of 15% if your compensation was over $400. Being an employee would not allow you to deduct any employee expenses on Schedule C. Mail the return