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March 31, 2020
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I attached my W-2 but then I feel because I work at a car dealer but then I also get a miscellaneous 1099 from the car manufacture how do I include that it’s not Self-Employed I’m not sure w

  • March 31, 2020
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Best answer by MinhT1

The payments from the car manufacturer reported on the form 1099-MISC are SPIFF payments.

 

The 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. http://www.irs.gov/pub/irs-pdf/p3204.pdf 

 

You report them as Other reported Income.

 

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 to All Income, 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.

1 reply

MinhT1Answer
March 31, 2020

The payments from the car manufacturer reported on the form 1099-MISC are SPIFF payments.

 

The 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. http://www.irs.gov/pub/irs-pdf/p3204.pdf 

 

You report them as Other reported Income.

 

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 to All Income, 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.
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