What you have is a SPIFF. It does not go on line 1 of form 1040 and is not subject to FICA (don't prepare a form 8919) or Self employment tax.
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. https://www.unclefed.com/IRS-Forms/2005/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 :"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 8 of Schedule 1.
