topic How do I report my 1099-MISC as a Car Salesmen? The money earned are Manufacturer's Incentive Payments but it keeps classifying it as self-employment. in Business & farm

How do I report my 1099-MISC as a Car Salesmen? The money earned are Manufacturer's Incentive Payments but it keeps classifying it as self-employment.

zeppeftw — Thu, 03 Feb 2022 16:47:36 GMT

Re: How do I report my 1099-MISC as a Car Salesmen? The money earned are Manufacturer's Incentive...

MinhT1 — Thu, 03 Feb 2022 16:56:15 GMT

The payments from the car manufacturer reported on the form 1099-MISC are SPIFF payments.

These payments (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.

You report them as Other reportable Income.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income on top of the screen
Scroll down to All Income, locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom
On the next page, click Start next to Other Reportable Income.

Re: How do I report my 1099-MISC as a Car Salesmen? The money earned are Manufacturer's Incentive Payments but it keeps classifying it as self-employment.

Opus 17 — Thu, 03 Feb 2022 17:14:39 GMT

You need to answer the test questions as "not work", "not like your main job", "not done for profit", "will not do the same work next year" and so on. It's not obvious that you should answer that way, but it is necessary so that Turbotax will not consider the money as self-employment.