SPIFF (Special
Performance Incentives for Field Force) payments reported on Form 1099MISC; (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. http://www.irs.gov/pub/irs-pdf/p3204.pdf
In TurboTax, Enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to
-1099-Misc and Other
common Income
- Income From 1099-Misc
On the follow up screen, enter SPIFF in the blank box, then on the
next screen, on the drop down list,
check “This was a Manufacturer's incentive
payment”
This will put it on line 21 of
form 1040 (Schedule 1)