Sched C and Statutory Employee

[Sam_2.0]

I am trying to use Turbo Tax to input our information. This year my husband is a full-time insurance agent, so he gets W2s and 1099s. I input all of the information just as it was received - the W2 went in the W2 section, the 1099s went in their appropriate section.

When I got done, it did the error check and told me:
It has been indicated that the statutory employee's wages are to be taxed on Business forms (Schedule C), but there is no Schedule C for the taxpayer/spouse with the statutory employee question marked yes and the same Gross wages. Wages must match exactly.

I am not sure what that means! I don't understand why it would not match up if I just input the numbers directly from the forms.

[mwcpa]

An employee who has the box on his/her w-2 marked as statutory employee has his/her wages reported on schedule C not on the wage line.

see:
www.irs.gov/businesses/small/article/0,,id=179118,00.html (Statutory Employees)

and from 2010 Instructions for Schedule C (2010)

"Statutory employees. If you received a Form W-2 and the “Statutory employee” box in box 13 of that form was checked, report your income and expenses related to that income on Schedule C or C-EZ. Enter your statutory employee income from box 1 of Form W-2 on line 1 of Schedule C or C-EZ and check the box on that line. Social security and Medicare tax should have been withheld from your earnings; as a result, you do not owe self-employment tax on these earnings. Statutory employees include full-time life insurance agents, certain agent or commission drivers and traveling salespersons, and certain homeworkers.

If you had both self-employment income and statutory employee income, you must file two Schedules C. You cannot use Schedule C-EZ or combine these amounts on a single Schedule C. "

I am not familiar with turbo tax, but seems like you may have used the wrong area for the "wage" input, you may need to call the software provider or review the instructions they provided on how one should input the details for your transaction.

[Sam_2.0]

Thanks! Its the online program, and their reference materials were not helping me find what I needed (maybe I just was not searching for the right terms). I will see if I can call them tonight.