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Statutory vs IC Question - Confused

Posted: May 02, 2013

Does a statutory employee receive a 1099 and able to claim independent contractor status at tax time? I've googled around and can't seem to find a definitive answer. If you can help answer this for me, thanks so much!

When I worked for MDI-MD, I was a statutory employee, but they sm - COMT

[ In Reply To ..]
took out Federal, FICA, and state taxes, and I am pretty sure I got a W-2, although I wouldn't swear to it. I wish I could find something like that again.

Oh the wonderful days of statutory! For me, sm - broke

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I started out statutory working for Transcriptions LTD and they did take out taxes but offered no bennies, BUT no set schedule. Let them know when you could work but work when you say you are going to work. It seemed so simple. I did get calls and sometimes even on holidays but to just hop on for an hour or more wasn't a big deal. Thanks for the memories.......

COMT - Ex-MDI

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Yes, wasn't it grand.....right up until they led us off the cliff.

The answer is no and yes - ICManiac

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You will receive a W2 at the end of the year, but it will have a checked box where it says "Statutory Employee." You then use that information just like you received a 1099 and follow filing guidelines like an independent contractor.

However, if you work during the year as an IC and SC, you will need to fill out two Schedule C forms, one for each income type. You can claim all your expenses on either one you choose, but it is to your benefit to claim all your expenses on the Schedule C based on your 1099 income.

The reason for this is because you are taxed based on not having paid any taxes during the year, but as a SC and having taxes taken out, you only calculate Schedule SE (Self-Employment Tax) based on your 1099 reported income, not your W2 "Statutory Employee" income. Schedule SE takes its information from the Schedule C where 1099 income is claimed. So, you need a separate Schedule C so you aren't double taxed on your Statutory Employee pay.

Thank you, IC Maniac - Very helpful post!

[ In Reply To ..]
Grazi!

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