I have income form several 1099 and a small W-2 from a company that I have done business with. I had entered a couple of my 1099's and my taxes were over $12,000. My W-2 was for $1,200 and when I checked the statutory employee box and answered the question about deductions from the schedule C, my taxes went down to $4,000. Will the software correct itself later on and reflect that I have more taxes or is the lower amount correct?
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From what you have posted the lower amount is not correct unless on the W-2 you received the box is checked that you are a Statutory Employee. (This is not common).
Claiming you are a Statutory Employee means that you can take expenses against your W-2 income.
Since you checked the box when putting in the information for your return, you need to return to your W-2 and take the check out of Box 13 for the program to calculate your taxes correctly.
Link for more information about Statutory Employees
I am a statutory employee, the W-2 is checked and I fit the insurance sales question that turbo tax asks. I understand this is not common but I fit the criteria.
If you are a Statutory Employee
The information from the W-2 has to link with a Schedule C in your tax return
Now you can enter your expenses which are related to your W-2 Statutory employee and will reduce that income.
Link to IRS with more information about Statutory Employees
turbo tax instructions
Statutory employee income cannot be reported on the same Schedule C as other self-employment income. If you have both types of income, report the incomes on two separate Schedules C.
When it asks about Life insurance sales, I sell health insurance as well as life. So, do I still answer that question about life insurance sales yes? Thank you for your help with this!
Yes, on the Schedule C where you report your life insurance sales income, answer the question about life insurance sales 'Yes'.
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