SPIFF (Special Performance Incentives for Field Force) 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. http://www.irs.gov/pub/irs-pdf/p3204.pdf
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, 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 (Schedule1).
You use neither Schedule C of sch F.
your self-employment activity." Since I'm not out hustling warranties on the curb, it's part of my job, I don't see how that would be self-employment, so I feel like you're right about it being line 21. So I delete the section when it pops up that self employment needs review, yes?
The IRS is aggressive in looking into 1099-Misc i(box 7) income that is not reported on Schedule C. Most SPIFFs go in box 3 of the 1099-Misc.