Reject Code FW2-001-03
The sum of all Form W-2s, 'WagesAmt' must not be greater than the sum of ['WagesAmt' in the return and (sum of all Schedule C (Form 1040), 'TotalGrossReceiptsAmt' when StatutoryEmployeeFromW2Ind' is checked)] unless Form 8958 is present in the return or Schedule 1 (Form 1040), 'CertainPenalInstnWagesAmt' or 'NonqlfyDeferredCompensationAmt' has a non-zero value. When evaluating this, a tolerance of $5.00 is allowed.
An individual tax return receives this reject when it includes a W-2 marked as a statutory but the income from the statutory W-2 hasn't been indicated correctly in a Schedule C for that activity.
The taxpayer receiving a W-2 marked statutory indicates that, while they are an independent contractor under common law, for employment tax purposes they are treated as an employee. While earnings from statutory employment activity aren't self-employment income, they are nonetheless reported on Schedule C so that the taxpayer can deduct their expenses related to that income.
See here if you're not familiar with creating Schedule C for a statutory employee in TaxSlayer Pro.
In addition to entering the W-2 in its menu, in the Schedule C be careful to include the statutory income on its own income line, not in gross receipts, and be sure not to add other non-statutory income in the same Schedule C.
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