Deductions & credits

If the bonus is paid by the manufacturer and not his employer, it may not be self-employed income. I would have to look this up, but that would sound similar to the situation with car salesman and spiffs.  If the bonus is paid by his regular W-2 employer, then it is supposed to be included on his W-2 income and the employer is filing their wage and tax reports incorrectly, probably to save money.  There is a procedure in TurboTax to indicate that this money was paid by his employer and should have been included on his W-2. You might also want to think about going to work for a more ethical employer.