I have received both W2 and 1099 Misc from my company.. Can I report both on same copy of Schedule C or on separate copy?

[rjs]

All payments from an employer to an employee are supposed to be treated as wages and included in the employee's W-2. Why did you get a 1099-MISC from the same company where you are a W-2 employee? Employers sometimes erroneously issue a 1099-MISC for special payments such as a bonus, commission, award, or reimbursement, instead of including it in the W-2. If that's what happened, there is a way to report the extra payment correctly on your tax return, in spite of the employer's error.

The only exceptions are if you were an employee and a contractor at different times during the year, or if the 1099-MISC is for a spiff (manufacturer's incentive payment). If it's a spiff, it does not go on Schedule C. There is a special way to report spiffs.

If you were an employee and a contractor at different times, you enter the W-2 and the 1099-MISC as if they are unrelated. You enter the W-2 in the W-2 section, as you would for any other job, and you enter the 1099-MISC as business income, which will go on Schedule C.

If it's any other situation, post back with the details of what the 1099-MISC payment is for and which box of the 1099-MISC the income is in, and I will give you detailed step-by-step instructions for how to enter it correctly in TurboTax.

[chan_siufu]

As a "statutory employee". I received both W2 and 1099-Misc from same employer.  Box 7 (nonemployee compensation) was reported in  the 1099-Misc. I have Schedule C (Copy 1)  to report the W2 income, and Schedule C (Copy 2)) to report the 1099-Misc. Is it ok to report both incomes  together on  one single copy of Schedule C, instead of two repeated copies?

[chan_siufu]

instead of two separated copies

[Stinkerbellkity · Accepted solution]

A W-2 does not get reported on any Schedule C as it is not self-employment income.  It is income you received as an employee of  someone else's company, and is reported under the W-2 income section.

[chan_siufu]

As a "statutory employee". I received both W2 and 1099-Misc from same employer.  Box 7 (nonemployee compensation) was reported in  the 1099-Misc. I have Schedule C (Copy 1)  to report the W2 income, and Schedule C (Copy 2)) to report the 1099-Misc. Is it ok to report both incomes  together on  one single copy of Schedule C, instead of two repeated copies?

[rjs]

They must be reported on separate copies of Schedule C. You cannot combine them.

The IRS instructions for Schedule C say the following (page C-5).

"If you had both self-employment income and statutory employee income, you must file two Schedules C. You cannot use Schedule C-EZ or combine these amounts on a single Schedule C."

[rjs]

Note that the 1099-MISC income is subject to self-employment tax. The W-2 income is not subject to self-employment tax because Social Security and Medicare taxes were withheld from it.

[Ryno10]

Thanks for helping me understand the unique way that I have to submit two separate Schedule C forms as a statuatory employee. On which Schedule C do I list my expenses? 

[ejweiss]

I received a W2 and 1099 Misc.  The W2 is more for the handling of benefits.  The 1099 is payment of commissions.

It would be good if I could combine the two since they are both related to my sales position.  It is also messing up my state return for my business. (insurance sales / investment advisor).

Thank you, Ellis

[CatinaT1]

See RJS's original answer above.  If you are an employee, everything should be reported to you on a W2.

[jdusky11]

I have this same situation. My husband got a W-2 from his employer but also a 1099-MISC for a commission payment (box 7). Can I show this on my return without it being self employment?

[CatinaT1]

This should all be reported on a W2.  I would ask your employer for a corrected W2.

[Rande1359]

Hi! Did you ever receive a solution to this issue? I have the same question.

Thank you! 

[Jan15Feb27Jul21]

No taxes were withheld from income or are reported on the W-2. I need to report the income on Schedule C in order to claim expenses and reduce the taxable income.