If I have a 1099 Misc. from my employer for rewards points and certification, why is it including the amount in self employed? I am not self employed.

[suttonrkjw]

This is a bonus of sorts.

[DoninGA]

To enter a Form 1099-MISC that is not for self-employment -

Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to Other Common Income
On Form 1099-MISC, click the start or update button

On the screen Did you get a 1099-MISC?, click on Yes
On the screen Let's get the info from your 1099-MISC, enter the amount received in box 3 and continue
On the screen Describe the reason for this 1099-MISC, enter a reason and Continue
On the screen Does one of these uncommon situations apply? - Select None of these apply and continue
On the screen Did the (reason) involve work that's like (your name) main job - Select No and continue
On the screen How often did (your name) get income for (reason) - Select 2025 and continue
On the screen Did the (reason) involve an intent to earn money? - Select No and continue

The amount entered from the Form 1099-MISC will be entered on Schedule 1 Line 8z
The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8

[DaveF1006]

It depends. It should have been included in wages subject to FICA taxes. When an employer gives you a reward (cash, points, or a gift card), they are legally supposed to

• Add the amount to your W-2.
• Withhold your share of FICA (7.65%).
• Pay their share of FICA (7.65%).

Instead, they avoided paying their share of FICA by issuing the 1099 MISC. 

In the 1099 MISC interview, you can avoid paying FICA taxes by answering two questions.

1.  When asked "Does one of these uncommon situations apply?", look for an option that says "This was a prize or award from a payer who was not my employer" or simply "None of these apply. Note: Even though it is from your employer, choosing the "prize/award" path prevents the self-employment trigger.
2. Did you have an intent to earn money? This would be hard to answer no since this was a work-related event.

My recommendation is to treat this like a work-related event and pay the SE/FICA taxes to avoid any scrutiny from the IRS. Answering those two questions above untruthfully is not the best practice in this case.