topic 1099 NEC and gift cards in Get your taxes done using TurboTax

1099 NEC and gift cards

Mfurstoss — Mon, 09 Mar 2026 06:20:39 GMT

I work as an insurance agent and received over $600 in gfit cards as part of an incentive from one company. I understand this has to be reported. Do I put the work description as insurance services, or gift cards? It asks if I started or stopped in 2021... how do I answer that? I only received gift cards during 2021 as this was the incentive period which ended 12/31/21... but I began insurance many years ago. It also asks was an active particpant, how do I answer that?

What was a great incentive just turned very complicated.

Re: 1099 NEC and gift cards

Critter-3 — Mon, 07 Feb 2022 14:31:34 GMT

If you are a wages employee then these are a kind of "spiff" and is reported as other income :

Down the left side of the screen, click Federal.
In the center of the screen, click Income & expenses.
On the screen Your income and expenses, scroll all the way down to the last section, Less Common Income.
Click the Start or Update button for the last topic, Miscellaneous Income, 1099-A, 1099-C.
On the next screen, Let's Work on Any Miscellaneous Income, scroll down and click the Start or Update button for the last topic, Other reportable income.
The next screen asks, Did you receive any other taxable income. Click Yes.
On the next screen, Other Taxable Income, enter a description and the amount. Click Continue.
On the next screen click Done.

The income will be reported on Schedule 1 line 8 with the description that you entered.

Re: 1099 NEC and gift cards

Mfurstoss — Mon, 07 Feb 2022 14:51:19 GMT

I am a salary employee for the agency I work for, this was gift cards from a company we represent. So I do not list it as an NEC at all, just "something else?" Just want to make sure I understand correctly since I received the 1099 NEC. Thank you!

Re: 1099 NEC and gift cards

Bert2786 — Mon, 07 Mar 2022 04:56:19 GMT

I have this exact same scenario…this reports on 1099-NEC…but when you go through those prompts..it seems to go through like you are a business owner..but basically these are just gift cards given to us by a carrier that is not our employer..so what is the correct way to file this?

Re: 1099 NEC and gift cards

ColeenD3 — Mon, 07 Mar 2022 13:39:58 GMT

Yes, report it the way described by @Critter-3. I would reference that it is a SPIFF (very important) and that it was incorrectly reported on a 1099-NEC. That way the IRS can match it with the 1099.

Re: 1099 NEC and gift cards

Bert2786 — Mon, 07 Mar 2022 16:08:25 GMT

Okay, thanks for response... I don't believe the 1099-NEC form is a mistake by the carriers.. as they were on the same forms as last year. But it looks like something is different in the software this years as it is treating the income as a business owner... and i see last year this income went under the "Miscellaneous" category, but this year around doesn't seem to be recognizing that.. But if the way you say is the correct way I will try it... But the IRS gets sent a 1099-NEC for this income earning.