Question

1099-NEC

Forum|Forum|4 years ago
February 16, 2022
1 reply
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Hello,

I received 1099-NEC forms. It is asking me to fill out Schedule C, however I do not operate a separate business from my employer. These are spiffs from Vendors that we work with, and when we sell their products, they have incentives or "spiffs". This is not a commision. How do I fill out the Schedule C when I do not own or operate a seperate business?

TIA

M

MinhT1

These SPIFF payments (1) are not treated as wages, (2) are not subject to federal income tax withholding, social security, Medicare, or federal unemployment tax, and (3) are not considered to be self-employment income and, therefore, are not subject to self-employment tax.

You report them as Other reportable Income, even if they are reported on form 1099-NEC.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income on top of the screen
Scroll down and locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.