Hello,
I received 1099-NEC forms. It is asking me to fill out Schedule C, however I do not operate a separate business from my employer. These are spiffs from Vendors that we work with, and when we sell their products, they have incentives or "spiffs". This is not a commision. How do I fill out the Schedule C when I do not own or operate a seperate business?
TIA
You'll need to sign in or create an account to connect with an expert.
These SPIFF payments (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.
You report them as Other reportable Income, even if they are reported on form 1099-NEC.
In TurboTax, open your return and follow these steps:
Thank you. In prior years they sent 1099-MISC forms. This is good info.
Kevin
I entered it the way you described and it still reduced my refund by $480 for a $2000 entry.
The steps @MinhT1 outlined above are the proper way to report this income without being charged any additional self-employment tax. It sounds like you are in the 24% tax bracket, which you can verify by finding your income and filing status in the tax tables.
You can also verify it is being reported properly by previewing your 1040:
Thanks again. If I just use my adjusted income I am at 24%. TT summary of 1040 shows effective tax rate of 16.02%
The 24% rate is your tax bracket which is based on your Taxable Income (Line 15 of Form 1040) and Filing Status.
Your marginal tax rate is the rate of the highest tax bracket that you'll be taxed in (for you it is 24%). It is the tax you pay on each additional dollar of your income and the rate by which each dollar of deduction lowers your tax. So, an additional 2K would be an additional $480 in tax.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
hdefontes
New Member
dibbeena1
Level 2
tiffanyraewebb
New Member
jjkim1
New Member
lbestram
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.