I paid Social Security tax and Medicare tax. I'm a statutory employee. Why do I need to file a Schedule C for a W-2

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 somewhere in between 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 work salespeople or have commission-based jobs.

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

Why do I need a Schedule C if I'm not self-employed?

Statutory employees generally do not pay Social Security or Medicare taxes (commonly reported in Box 2 and 4 of your W-2). So even if you don't "own" a business, you still need to file a Schedule C to properly report your income, expenses, and self-employment tax.

You would also get this screen asking for more information.