Commission SPIFF from Vendors that the company i work at, sells for - 1099-misc help!

[kgucks]

Hi!

I worked in luxury jewelry sales for a company as a w/2 sales associate.

There are several vendors that we sell jewelry for.  These vendors give you commission SPIFFS for selling their jewelry specifically. 

I received a 1099-Misc for commission SPIFFS and turbo tax keeps trying to make me do a Schedule C, but it's not self-employment. 

What do I do!? 

I got a 1099-NEC as well from another vendor for the exact same type of commission SPIFFS - what do I select? It's not self-employment, farm, hobby, lawsuit, medicaid, nor income that should've been on my w-2! 

HELP!!

Is this manufacturers incentive for the 1099-MISC?

What about for the 1099-NEC?

HELPPPP

[rjs]

What is "our company"? Is it a company that you are a part owner of? Or are you an employee of "our company" and you get a W-2.

If you are an employee and you get a W-2, then yes, the payments from the vendors are manufacturer's incentive payments. For the 1099-MISC you can select that description. For the 1099-NEC select "Lawsuit settlement." When it asks if any part of the lawsuit was for back wages, answer No. Entering the 1099-MISC and 1099-NEC this way will put the income on Schedule 1 line 8z.

[kgucks]

Hi!

I'm a w-2 employee for Diamonds Direct. I receive commissions from them, and also get "spiffs" from other vendors for selling their jewelry pieces. 

Why would I select lawsuit settlement? This is a SPIFF that I receive for selling their specific line of jewelry at the company I work for. 

[rjs]

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@kgucks wrote:

Why would I select lawsuit settlement? This is a SPIFF that I receive for selling their specific line of jewelry at the company I work for. 

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@kgucks 

You should select lawsuit settlement because it's a trick to put the income in the right place on your tax return. It will not say "lawsuit settlement" on the tax return. There is no option for a spiff on a 1099-NEC.

(Probably the reason spiff or manufacturer's incentive payment is not a choice for a 1099-NEC is that the payment is not supposed to be reported on a 1099-NEC. The vendor was wrong to use that form. They should have issued a 1099-MISC. But the easiest way for you to deal with their error is to use the trick that I am suggesting.)

[kgucks]

Thank you! So for the 1099-misc. I should just select its a manufacturers incentive payment?

[kgucks]

Basically youre trying to get it to show as "other income" correct? (For the 1099-nec)

[rjs]

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@kgucks wrote:

Basically youre trying to get it to show as "other income" correct? (For the 1099-nec)

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Yes.