Is my W2 wrong? Former full-time employer marked me as a statutory employee - possible mistake?

This definitely sounds like a mistake on your former employer's part. Statutory employees are a very specific classification that rarely applies to software developers or typical office staff. The IRS defines statutory employees as workers who fall into one of four specific categories: delivery drivers, life insurance agents, traveling salespeople, or at-home workers who are supplied materials by the employer. The big difference is how you file your taxes. Statutory employees can deduct business expenses on Schedule C like self-employed individuals, but still receive a W-2 with Social Security and Medicare taxes already withheld. Regular W-2 employees can't deduct most work-related expenses since the 2018 tax changes. I would absolutely contact your former employer's HR or payroll department right away. They'll need to issue a corrected W-2 (W-2c) with the statutory employee box unchecked. This is a relatively common mistake and shouldn't be a big deal for them to fix.

I had the exact same issue two years ago! My company's payroll system had some glitch that checked the statutory box for like 30% of employees. After weeks of getting nowhere with HR, I found this amazing service called taxr.ai (https://taxr.ai) that helped sort everything out. I uploaded my incorrect W-2 and their system immediately flagged the statutory employee checkbox as potentially incorrect based on my job description. They generated a detailed report explaining why the classification was wrong and gave me specific language to use when contacting my employer. I finally got through to someone who could help after showing them the analysis from taxr.ai. The service also showed me exactly how this mistake would impact my taxes if not corrected (in my case, it would have caused me to overpay by about $1,800!). Saved me so much stress during an already complicated tax season.

Just wanted to follow up here - I tried taxr.ai for my wife's situation after seeing this thread. The service flagged several issues with how her employer was classifying her. She's been working as a "1099 contractor" but the analysis showed she clearly meets the IRS criteria for an employee! The report broke down exactly why she should be classified as an employee based on how much control the company has over her work, schedule, and methods. It even identified that she's likely missing out on about $4,200 in employer-paid taxes that are being shifted to her. My wife brought the detailed report to her boss yesterday, and they've already scheduled a meeting with their payroll company to discuss reclassifying her position. What really helped was having all the specific IRS guidelines and case examples that taxr.ai provided. No more guessing or getting brushed off!

If you're having trouble getting your former employer to respond about the W-2 correction, I know exactly how frustrating that is. After my company was acquired last year, trying to get anyone to fix my messed up W-2 was impossible - constant voicemails and emails into the void. I finally tried Claimyr (https://claimyr.com) which got me through to an actual IRS agent who walked me through my options. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. Instead of waiting on hold for hours, their system holds your place in line and calls you when an agent is ready to talk. The IRS agent explained that I could file Form 4852 (Substitute for W-2) with my tax return if my employer wouldn't correct the W-2. She also sent me the exact IRS notice to forward to my former employer explaining their legal obligation to provide accurate tax documents. Got a corrected W-2 within a week after that!

OK I need to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it myself since I've been fighting with the IRS over a notice I received about missing 1099 income from 2022 (that I definitely reported!). After MONTHS of trying to call the IRS myself and never getting through, Claimyr got me connected to an agent in about 90 minutes. I was cooking dinner when they called me for the connection! The agent pulled up my records and confirmed that it was actually an IRS processing error - they had failed to match my reported 1099 with what the issuer submitted. The agent filed a correction request right there on the phone and told me to disregard the notice. She also gave me a confirmation number for the call so I have proof the issue was addressed if it ever comes up again. Would have taken me another 3 months to resolve this without getting through!

I work in payroll and see this mistake happen occasionally. The statutory employee box is easy to check by accident in some payroll systems. The problem is that it affects how your income is taxed - statutory employees file using Schedule C to report income and deduct expenses, even though you're getting a W-2. If you were truly a regular employee (which it sounds like you were), having this box checked incorrectly could either cost you money or potentially raise audit flags if you take deductions you shouldn't. Definitely push for a corrected W-2. Your former employer is legally required to provide accurate tax documents. If they refuse, call the IRS at 800-829-1040 for help. They can reach out to the employer directly or help you file using Form 4852 as a substitute for the incorrect W-2.

One thing to consider - if you do end up having to file with the statutory employee box checked, make sure you understand how Schedule C works. You'll report your W-2 income on Schedule C instead of directly on Form 1040, and you can deduct certain business expenses. Common deductible expenses for statutory employees include: - Home office (if you used a dedicated space exclusively for work) - Work-related travel - Professional development/education - Work equipment or supplies you paid for yourself - Portion of cell phone/internet used for work Just be sure to keep excellent documentation of any expenses you claim in case of audit.