🔍 Common Reasons for This Reject:
A W-2 is marked as statutory, but its income was not reported correctly on Schedule C.
The statutory income was mistakenly included in gross receipts rather than its designated income line.
Additional non-statutory income was incorrectly mixed into the same Schedule C.
✅ How to Fix:
Review the W-2 entry and confirm if the "Statutory Employee" box is checked.
Ensure the statutory W-2 income is correctly reported on Schedule C:
Do not include statutory income in gross receipts.
Do not mix statutory and non-statutory income in the same Schedule C.
If the taxpayer is not a statutory employee, uncheck the box in the W-2 entry.
If needed, check for Form 8958 or Schedule 1 adjustments that might resolve the discrepancy.
🔄 Once corrected, resubmit the return to resolve the rejection. 🚀