Need help with Tax people that have experience in using 1099 MISC?
I worked at a place called ace cash express and we distributed cards for another company (prepaid cards) when we sold them to customers we got points and every card we sold we got 800 points once we received 4,000 points we could turn them points and get money for them. So I received a 1099 misc from this company, after I filed my taxes already and in box 7 it says 1740.00 dollars. I kept track of how much money I got from turning my points in I reported that income in the other income part on th 1040. Which was 1740.00 dollars. So what should I do now will I get in trouble cause it showed putting that in the other income box it took taxes off that money.
- Anonymous10 years agoFavorite Answer
If these are "spiffs" then you treated them OK. You can find out spiffs by checking with the other employers. They go in other income and not Sch C
- Willie JLv 410 years ago
This sounds like it should have been reported in Box 3 on the 1099.
Here are the instructions:
Box 7. Shows nonemployee compensation. If you are in the trade or business
of catching fish, box 7 may show cash you received for the sale of fish. If
payments in this box are SE income, report this amount on Schedule C, C-EZ,
or F (Form 1040), and complete Schedule SE (Form 1040). You received this
form instead of Form W-2 because the payer did not consider you an
employee and did not withhold income tax or social security and Medicare tax.
If you believe you are an employee and cannot get the payer to correct this
form, report the amount from box 7 on Form 1040, line 7 (or Form 1040NR,
line 8). You must also complete Form 8919 and attach it to your return.
Box 3. Generally, report this amount on the “Other income” line of Form 1040
and identify the payment. The amount shown may be payments received as
the beneficiary of a deceased employee, prizes, awards, taxable damages,
Indian gaming profits, or other taxable income. See Pub. 525. If it is trade or
business income, report this amount on Schedule C, C-EZ, or F (Form 1040).
- JudyLv 710 years ago
If you had won a prize on a radio station or game show, The $1740 was part of your compensation for working, so should really have shown on your W-2. They took taxes off the 1099? That makes no sense at all.
You might get a letter months from now or even a year from now looking for an some extra tax on the money. You can try then to convince them it's an award you shouldn't have to pay self employment tax on. I doubt it will fly, but it might.
- Anonymous10 years ago
Spiffs are always shown on 1099-Misc, box 7.
IF the owner of Ace Cash Express got the form, he'd include it in his business income.
Since you are an employee, you list it on line 21 of the 1040 as "Manufacturer Incentive."
If you get mail, repeat that phrase.
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- troLv 710 years ago
you should report this 1099 M income on Sch C and you will have to complete SE as well