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TaxSlayer Reject Code FW2-001-02
TaxSlayer Reject Code FW2-001-02
Angelica Acebes avatar
Written by Angelica Acebes
Updated over 3 weeks ago

Reject Code FW2-001-02 occurs when a W-2 is marked as a statutory employee W-2, but there is no associated Schedule C in the tax return.

Why This Happens:

  • Wages reported on a statutory employee W-2 must be included as income on Schedule C (Profit or Loss from Business).

  • These wages are not reported on Form 1040, Line 1 like regular W-2 wages.

How to Fix This Rejection:

  1. Verify the W-2 entry:

    • Check if the "Statutory Employee" box is correctly marked on the W-2.

  2. Ensure that a Schedule C is included in the return:

    • In TaxSlayer, go to:

      • Income MenuBusiness Income (Schedule C)

      • Create a Schedule C entry.

      • Enter the business information and income from the W-2.

  3. Link the W-2 to the correct Schedule C:

    • Select the correct Schedule C when prompted.

  4. Save and retransmit the return.

For step-by-step guidance:

Following these steps ensures compliance with IRS requirements and prevents further rejection of the return.

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