The payments from that company reported on the form 1099-MISC are SPIFF payments.
These 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.
They are reported as Other reportable Income.
In TurboTax Online, 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 Miscellaneous Income section
- Enter your form 1099-MISC and describe the payment as SPIFF
- On the page titled Do one of these uncommon situations apply?, choose This was a manufacturer's incentive payment and click Continue
See also Hal_Al's answer.
Edited 03/02/26 | 6:01 AM PST
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