My husband received sales incentive $ on a 1099-MISC from a manufacturer (not his employer). Turbo Tax wants to set him up as self-employed but he is not. Is it prize $

He sells flooring. The manufacturer issued a 1099-MISC, not his employer. Listing it as prize money fixes the error, but is it? Otherwise, it wants us to list W2 we pay employees and a self-employed EIN.

643

Expert Alumni

Apr 13, 2025 4:24:16 AM

To enter income from Form 1099-MISC so that it is reported on Form 1040 Schedule 1 line 8z, use the following steps:

Go to Income > Other Common Income > Income from Form 1099-MISC and click Start or Update
Answer Yes you did receive a 1099-MISC
Fill in the details from your 1099-MISC then click Continue
Provide a short description for the reason you received the 1099-MISC then click Continue
On the next screen titled, “Does one of these uncommon situations apply?” choose the last option, None of these apply (unless one of the choices does apply to you -- then you may not see the remaining questions shown here, but the income will be reported) and then click Continue
On the next screen asking if the 1099 involved work like your main job, answer No and click Continue
On the next screen, check the box that you received the income in 2024 and then click Continue
Finally, choose “No, it didn’t involve an intent to earn money” and click Continue

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My husband received sales incentive $ on a 1099-MISC from a manufacturer (not his employer). Turbo Tax wants to set him up as self-employed but he is not. Is it prize $