Error, Schedule C Line 1F W2 Statutory income cannot be reported

Forum|Forum|5 years ago
March 3, 2021
5 replies
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Schedule C Line 1F W2 Statutory income cannot be reported on the same form as other business income is appearing. The only business income on this Schedule C is the Statutory employee income. The error prevents me from filing the return.

DianeW777

Do you have a Box 13 Statutory Employee checked when you entered the W-2?

If it is checked on your physical W-2, then see the information below. If you accidentally checked it when entering the information, go back to uncheck it. If the trouble continues, delete the W-2 and then re-enter it.

Statutory employees are a very special designation and have their own special rules. If you are a statutory employee, you can claim certain business-related expenses on Schedule C instead of Schedule A. This means you get a bigger tax deduction than traditional employees.

Statutory employees are considered both independent contractors and regular employees. Most people are regular employees - they work for an employer and the employer says what job will be done and how to do it.

Statutory employees have been declared employees under federal tax laws, but are independent contractors under common law. These workers are usually working salespeople or have commission based employment.

The information from the W-2 has to link with your Schedule C

In TurboTax Self-Employed Online, go to Wages and Income and enter your W-2.
- TurboTax CD/Download use Personal Tab > Wages and Income
Make sure that Box 13 'Statutory Employee' is checked.
Answer the questions on the subsequent screens until you get to:
"Any Related Business Expenses?" Click "Yes".
Go through the interview questions.
Your W-2 Income is now linked to Schedule C.

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kevindouglascamp

I have the same problem. Most of the answers here assume that the W2 has Statutory Employee correctly CHECKED. I have a W2 that (correctly) does not have Statutory Employee checked but this W2 is somehow linked to my side business (1099-NEC, Schedule C).

I have deleted the W2 and reloaded it, but the Schedule C Statutory Employee check box remains checked with the same error message.

Please address this use case.

AliciaP1

It would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue.

You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions:

Go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

@kevindouglascamp

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jrhino

For 2020, 1 have 1 W2 and 2 1099-NEC that I have entered on TurboTax. I can't move past review as it gives me this error message:

Line 1f: W2 Statutory cannot be reported on the same Schedule C as other business income. Either remove any amount entered for statutory employee income or unlink the W-2 worksheet from this copy of Schedule C and link it to a different Schedule C.

I deleted the W-2 and manually re-input, still getting error message, Please advise

GKBNY

Did you find a resolution or a work around to this? I am having the exact same issue, statutory employee W-2 and a couple of 1099-NECs

Critter-3

You must have 2 Sch C forms ... one for the statutory W-2 box 13 expenses and another for the 1099-NEC income ... they must be on separate forms.

Tracy0114

It looks like part of my message wasn't showing. There wasn't a W-2 entry made on this return. So I don't understand how it could have been populated to begin with. I saw that it said to delete the Schedule C and start over. I don't know how to do that either. But I will go try that. Didn't find this very helpful.

Ruthda1

Need to delete the W2 and re-enter it because I did not see that message. Thank you for the share it was much needed. @AbrahamT

Googs1080

I get related error. It is looking for a value for 1f. Enter income if Stat Box checked but not entered on W-2. But the stupd thing says two bullets down “income transferred from w2 worksheet. What do i need to do?