1099 misc

[makeugohmmm]

What is the name of your state (only U.S. law)? MN

So, I work at a car dealership. Throughout the year I get little "incentives" added to a card for doing things required in my job. For example, signing people up for a credit card, selling tires..stuff like that. So, I've never really made much but last year I won an IPAD in an incentive and boy is it confusing me on my tax filing.

I got a 1099 MISC with box 3 checked for 987.00. I put that in my tax act software and I got to the end and it's telling me I *may* have to pay self employment tax and fill out a schedule C. Is that necessary? I was not self employed. This was a part of my full time job. I can answer any other questions that you have.

 

[makeugohmmm]

"You must pay Self-employment (SE) tax if:
1. Your net earnings from self-employment from other than church income were $400 or more or
2. You had church employee income of $108.28 or more



If this income is subject to SE tax, delete this copy of Form 1099-Misc and complete the Business Income topic instead. To enter this income as self-employment income return to the Federal Q&A, select 'Business Income' from the Quick Q&A Topics, and then select the most appropriate place to enter your income.


Please note that the IRS has implemented new review procedures for returns reporting more than $400 in other income. This review process may slow the processing of your return."

I'm confused because like I said, this is not self employment income? Or is it according to IRS?

 

[Zigner]

It should not be necessary - contact the folks who made the software to confirm.

 

[tranquility]

https://www.irs.gov/pub/irs-pdf/p3204.pdf

It probably should just go on line 21 as "other income" without SE tax calculation. As to how to make the program do that, you'll have to ask technical support.