You'll need to sign in or create an account to connect with an expert.
It is taxed at your regular tax rate.
For example, if you are in the 25% tax bracket, it is taxed at 25% (plus State tax, plus the 'extra' income could affect other things on your tax return).
It is not subject to Federal tax withholding, but it is still subject to Federal income tax.
How do I know without seeing my return before filing that my 1099 Misc for incentive payments was applied
correctly and not self employment.
The income should show on line 8 of Schedule 1 with wording that identifies it as incentive or other income.
You can view your entire return or just your 1040 form before you e-file:
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
msfarkash1
New Member
kemper-e
New Member
Young L
Level 1
sims-family1
New Member
afairbank
Level 1