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Personal Service Income (W-2, 1099-MISC)Drake Software User’s ManualFigure 5-6: Entering foreign employer information on W2 screenScreen code: FECIf no W-2 was issued by a foreign employer, use the Foreign Employer Compensationscreen, accessible from the General tab, to enter employee, employer, andincome information._NOTEFor information on the foreign income exclusion (Form 2555), see“Excluding Foreign Income” on page 110.StatutoryEmployeesBecause all statutory employees must file Schedule C for expenses related to W-2income, a W2 screen and a C screen must be created for a statutory employee.To indicate a statutory employee on a tax return:Screen code: W2 1. On the W2 screen for the employee, select Stat employee (line 13).2. On the C screen for the employee, select Statutory employee OR qualified jointventure.Screen code: C 3. On the W2 screen, select the associated Schedule C from the F code list.Figure 5-7: W-2 in this example is associated with the second (#2) Schedule C enteredThe selected Schedule C will now indicate that the taxpayer was a statutory employee.ITIN/SSNMismatch onW-2Corrected orAltered W-2If the client has an Individual Taxpayer Identification Number (ITIN) on screen 1 andthe SSN on the W-2 does not match that ITIN, enter the SSN from the W-2 in theITIN/SSN Override field at the bottom of the W2 screen. Press F1 from this field formore on e-filing returns with ITIN/SSN mismatches.The W2 screen has check boxes to indicate that a W-2 was altered, handwritten (nonstandard),or corrected. To indicate that a W-2 was altered or corrected from a previousW-2, select the appropriate box on the W2 screen.88 Tax Year 2008