The statutory employee box in box 13 is checked on Josies fo

The statutory employee box in box 13 is checked on Josie\'s form W-2. Josie had expenses related to her income. How should she report the form W-2 box 1 amount on form 1040?

A) Deduct the expenses from the box 1 amount before reporting the income of form 1040 line 7.

B) Report the box 1 amount on form 1040, line 7 and use Schedule A to deduct her expenses.

C) The amount of taxable benefits he must add to Form W-2, box 1 wages before completing line 7 of form 1040.

D) The amount he can deduct from form W-2, box 1 wages before completing line 7 form 1040.

Please, only answer if certain!

Solution

W2 shows the amount of wages and salaries paid by the employer to the employee, the amount of federal, state and other taxes withheld from the employee\'s paycheck.

Box 13 is regarding - statutory employee, retirement plan and third party sick pay. Statutory employee means an independent contractor, who is treated as an employee under the IRS law. They can use Schedule C instead of Schedule A.

Box 1 is \"wages, tips and other compensation\". The statutory employee can deduct work related expenses.

Line 7 of form 1040 is - wages, salaries tips.

The statutory employee can deduct the expenses from box 1 before reporting it in form 1040 line 7. Hence the answer is option \"A\".