Skip to main content
All CollectionsTaxSlayer Online
TaxSlayer - 1040-SR (Web-based) | How to Enter Statutory Employee Income From a W-2
TaxSlayer - 1040-SR (Web-based) | How to Enter Statutory Employee Income From a W-2

TaxSlayer

Kenneth Lowe avatar
Written by Kenneth Lowe
Updated over 2 weeks ago

What is a Statutory Employee?

The term "statutory employee" refers to an independent contractor who is classified as an employee for tax withholding purposes.

Income earned as a statutory employee is reported on Schedule C, rather than as wages on Form 1040. If a taxpayer receives a Form W-2 marked with "statutory employee" in box 13,

Here's how to enter it in the software:

From the left-side menu, search for W2, then select Form W-2, Wage and Tax Statement, as shown below.

Alternatively, to access Form W-2, go to Income and then select Form W-2.

2. When on Form W-2, enter all the information regularly, then scroll down to Box/Section 13, then check the box for Statutory Employee
(checking this box makes the wages entered on W-2 not show under 1040 wages, however, you should still enter all the information on Form W-2 the same way).

3. Click Continue

4. When you see the message indicating that you selected the Statutory Employee box and that income (Box 1 on the W-2) must be reported on Schedule C, click "Create a Schedule C."

5. From the Schedule C menu, choose Income

6. Enter the amount from Box 1 (Wages) on the W-2 into the "Income Reported to You on Form W-2 as Statutory Employee" box.

It's important to note the following:

  1. Income from statutory employment should NOT be combined with self-employment income. If you have self-employment income, you must file a separate Schedule C for it. Do not combine the Schedule C for statutory employment with any other Schedule C.

  2. Do NOT transfer statutory income to Schedule SE. Social Security and Medicare taxes should have already been withheld and reported on Form W-2.

Did this answer your question?