02-25-2014 10:54 PM
My W2 has me marked as a statutory employee. I put in all the necessary info for my W2s into the H&R Block software. However, its telling me that I need to do a schedule C. Isn't schedule C for people who are self employed and own their own business? I am neither so this doesn't make any sense to me! Please help, thanks in advance
02-26-2014 05:13 PM
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02-26-2014 10:03 PM
A statutory employee is a very special case. There are only four types of jobs that could possibly be statutory employees: Some life insurance agents, certain drivers, certain traveling salespeople, and many people doing piecework at home.
In a way, statutory employees have the best of both worlds. Their employer has to pay the employer's share of FICA (unlike most self-employed people, who have to pay both employer and employee shares). But unlike most employees, a statutory employee gets to deduct expenses on Sch. C, which is much better than having to deduct them on Sch. A.
So double check to be sure you really qualify. You can read the IRS explanation for more info. But if you really are a statutory employee, learn to keep track of your expenses, and consider the Sch. C an advantage.