I see other similar posts that Turbotax overcharging tax due from the reported income on a 1099-MISC for credit card incentive bonuses (unless there is a better way to document).
I received a 1099-MISC from Chase for $1150 for credit card referral bonuses, which I understand are taxable.
What I'm seeing in forums is to document the income on the 1099-MISC as SPIFF then click "this was a manufacturer's incentive payment."
I have entered the information multiple ways and this continues to increased my federal taxes by $447 no matter what I click when I enter it. This is 38.8%, when I'm in the middle of the 35% tax bracket.
Can anyone give me a reason why I'm paying 38.8% on this? Do I need to enter it in a different way? Is this a Turbotax error?
Thanks,
Tood
