You can report it as
other income on Form 1040 line 21. Here's how to enter it in TurboTax.
·
Click the Federal
Taxes tab ( Personal in the Home & Business version)
·
Click Wages &
Income. (Personal income in the H & B version)
·
Click "I'll
choose what I work on."
·
On the screen
"Your 2016 Income Summary," scroll all the way down to the last
section, "Less Common Income."
·
Click the Start or
Update button for the last topic, "Miscellaneous Income, 1099-A,
1099-C."
·
On the next screen,
"Let's Work on Any Miscellaneous Income," scroll down and click the
Start or Update button for the last topic, "Other reportable income."
·
The next screen asks,
"Did you receive any other taxable income." Click Yes.
·
On the next screen,
"Other Taxable Income," enter a description and the amount. Click
Continue.
·
On the next screen
click Done.
The income will be
reported on Form 1040 line 21 with the description that you entered.
Does this mean it will be taxed at the same rate as my income is? And will that be federal and state taxed? I’m sharing this with someone and want to account for the fact that i will lose part of the $1000 total referral fee