Yes. You have a SPIFF. This is a common situation and TT can handle it.
In TurboTax, Enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to
-1099-Misc and Other common Income
- Income From 1099-Misc
On the follow up screen :"Describe the reason for this 1099-Misc", enter SPIFF in the blank box, then on the next screen, "Does one of these Uncommon situations apply" on the drop down list, check “This was a Manufacturer's incentive payment”
This will put it on line 8z of Schedule 1 then line 8 of form 1040.
A SPIFF (Special Performance Incentives for Field Force) is a small, immediate bonus for a sale. Typically, "spiffs" are paid, either by a manufacturer or employer, directly to a salesperson for selling a specific product.
IRS Publication 3204 discusses spiffs for the auto industry, however the principal should apply to any spiff.
SPIFF payments reported on Form 1099MISC; (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.
https://www.unclefed.com/IRS-Forms/2005/p3204.pdf
The entry method described by @MinhT1 also works.
