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Level 1
December 7, 2019
Solved

My client receives his commissions as w-2 wages. I need to know if there is a way to change the wages in box 1 to commissions on schedule c or elsewhere?

  • December 7, 2019
  • 2 replies
  • 20 views

The employer will not check the statutory employee box so he cannot deduct his employee business expenses. Any suggestions as to where he can put the wages which are really commissions?

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Best answer by TaxGuyBill

If the client is an employee, the commissions belong on a W-2, not on a Schedule C.

If the client has a lot of expenses, he should negotiate with his employer to pay the expenses under an "Accountable Plan", even if it means slightly reducing the amount of wages or commissions he receives.

2 replies

Level 15
December 7, 2019

If the client is an employee, the commissions belong on a W-2, not on a Schedule C.

If the client has a lot of expenses, he should negotiate with his employer to pay the expenses under an "Accountable Plan", even if it means slightly reducing the amount of wages or commissions he receives.

IRonMaN
Level 15
December 7, 2019
The smiley guy is right.  But since the statutory employee category is pretty limited, I'm curious what your client does for a living.
Slava Ukraini!
abctax55
Level 15
December 7, 2019

This conversation should have occurred a year ago, as 2018 was starting out.

One doesn't get to just *pick* statutory employee to save on taxes.

(edit - and why do I think this isn't going to be the first time the issue comes up?  I bet TurdoTax will be going nuts over it.)

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