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Member
nklw
Posts: 1
Registered: ‎02-25-2014

Statutory Employee - Why is H&R software making me fill out a schedule C?

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

Client Support
LaceyR
Posts: 358
Registered: ‎02-17-2014

Re: Statutory Employee - Why is H&R software making me fill out a schedule C?

Welcome to the community! To be able to better assist you with your issue please contact 1-800-HRBLOCK (472-5625) and select option 2 for digital support. I hope this helps you!

 

Thank you for choosing H&R Block

Lacey

Associate
GaryF
Posts: 403
Registered: ‎03-17-2013

Re: Statutory Employee - Why is H&R software making me fill out a schedule C?

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.