Life Insurance Agent, a 401(k) Plan and Statutory Employee

[CTipper]

Greetings all,

I'm looking for help with a code site so that I've got something for my files.

I've got a client who is a statutory employee with a life insurance company. She's also in that life insurance company's plan and has made deferrals and received an employer contribution allocation.

She's also got her own plan with her own company. She's adding the W2 from the life insurance company to her Schedule C compensation.

When they're not benefitting from another company's plan that kind of makes sense with what I understand about a Statutory Employee. However, when that W2 compensation is being used to provide an Employee benefit under another Employer's plan, how do we use that very same compensation twice?

What am I missing?

[JanetM]

She needs to file two Schedule C forms. One gets the W-2 income and the other has the her self employment income. You can't combine the two. C with w-2 income does not count as compensation for her self employment plan.

See 1040 Schedule C instructions.