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pismb53
New Member

I have miscellanous income which is bonus pay from selling cars, Does this have to be reported on Sch. C?

I have no business expense for this extra income.

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1 Best answer

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MichaelDC
New Member

I have miscellanous income which is bonus pay from selling cars, Does this have to be reported on Sch. C?

No, if this is a SPIFF, it does not have to be reported on Schedule C. A manufacturer's incentive payment, commonly called a "spiff" in the auto industry, is a payment for a goal not paid by your employer.  For example, if you work for a Chevrolet dealer and receive a bonus from GM (not the dealer) for selling a car, it is a "spiff."

If it is paid by your employer, it may be reported on Form 1099-MISC, box 7 (Non-Employee Compensation). This situation would require a Schedule C.

Generally, enter the 1099-MISC in TurboTax as presented on the paper form. If it requires a Schedule C, TurboTax will create one.

To enter a SPIFF with a 1099-MISC:

While in your return, type “1099-misc” in the Search box and then select the “Jump to” link. This will take you directly to the section where you can enter your 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

To enter a SPIFF without a 1099-MISC:

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         Click "I'll choose what I work on."

·         On the screen "Your 2016 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

*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. Box 3 of the 1099-misc is the correct place for a SPIFF to be reported. http://www.irs.gov/pub/irs-pdf/p3204.pdf








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1 Reply
MichaelDC
New Member

I have miscellanous income which is bonus pay from selling cars, Does this have to be reported on Sch. C?

No, if this is a SPIFF, it does not have to be reported on Schedule C. A manufacturer's incentive payment, commonly called a "spiff" in the auto industry, is a payment for a goal not paid by your employer.  For example, if you work for a Chevrolet dealer and receive a bonus from GM (not the dealer) for selling a car, it is a "spiff."

If it is paid by your employer, it may be reported on Form 1099-MISC, box 7 (Non-Employee Compensation). This situation would require a Schedule C.

Generally, enter the 1099-MISC in TurboTax as presented on the paper form. If it requires a Schedule C, TurboTax will create one.

To enter a SPIFF with a 1099-MISC:

While in your return, type “1099-misc” in the Search box and then select the “Jump to” link. This will take you directly to the section where you can enter your 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

To enter a SPIFF without a 1099-MISC:

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         Click "I'll choose what I work on."

·         On the screen "Your 2016 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

*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. Box 3 of the 1099-misc is the correct place for a SPIFF to be reported. http://www.irs.gov/pub/irs-pdf/p3204.pdf








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