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JV
Returning Member

Should we amend a return to correct a 1099 misc income designation? It was a manufacturer's incentive payment and would change our returns and increase federal return?

I originally put it as miscellaneous sales but it was a manufacturer's incentive payment (husband is car salesman). It is listed as an uncommon situation in the description for the 1099. I did not know that was the correct way to designate it when we originally did our taxes.  Amending the return would change our federal/state returns to increase the federal return and very slightly increase state tax owed.

1 Best answer

Accepted Solutions
Coleen3
Intuit Alumni

Should we amend a return to correct a 1099 misc income designation? It was a manufacturer's incentive payment and would change our returns and increase federal return?

Yes. It is not self-employment income, it is a Spiff.

To enter a SPIFF with a 1099-MISC:

While in your return, type “1099-misc” in the Search box and then select the “Jump to” link. This will take you directly to the section where you can enter your 1099-MISC.

On the  follow-up screen,  enter SPIFF in the blank box, then on the next screen,  on the drop down list, check “This was a Manufacturer's incentive payment”

This will put it on line 21 of form 1040.

Instructions for amending your 2018 tax return will be available after the IRS releases the current Form 1040X.

You can amend returns that have been accepted by the IRS. If your return is pending, you won't be able to make any changes until it's accepted or rejected by the IRS. If you don't know your e-file status, we can help you check it.

Select a tax year for specific amending instructions.

Keep in mind: You have 3 years from the date you filed your return (or 2 years after you paid the tax due, whichever is later) to file an amended return, which means you don't have to get it done by the April 15 filing deadline.

View solution in original post

1 Reply
Coleen3
Intuit Alumni

Should we amend a return to correct a 1099 misc income designation? It was a manufacturer's incentive payment and would change our returns and increase federal return?

Yes. It is not self-employment income, it is a Spiff.

To enter a SPIFF with a 1099-MISC:

While in your return, type “1099-misc” in the Search box and then select the “Jump to” link. This will take you directly to the section where you can enter your 1099-MISC.

On the  follow-up screen,  enter SPIFF in the blank box, then on the next screen,  on the drop down list, check “This was a Manufacturer's incentive payment”

This will put it on line 21 of form 1040.

Instructions for amending your 2018 tax return will be available after the IRS releases the current Form 1040X.

You can amend returns that have been accepted by the IRS. If your return is pending, you won't be able to make any changes until it's accepted or rejected by the IRS. If you don't know your e-file status, we can help you check it.

Select a tax year for specific amending instructions.

Keep in mind: You have 3 years from the date you filed your return (or 2 years after you paid the tax due, whichever is later) to file an amended return, which means you don't have to get it done by the April 15 filing deadline.

View solution in original post

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