Question

My husband is in car sales. He gets bonus money each month from GM. At the end of the year he gets a 1099-MISC for that amount. Can he deduct expenses?

Forum|Forum|3 years ago
February 1, 2023
1 reply
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Tubo Tax keeps processing it as self employment income, which it really isn't. He gets a W-2 from the dealership.

TurboTax Deluxe Online

If you receive a form 1099-MISC for a bonus, then you are not considered as self-employed and do not need to file a Schedule C. No expenses allowed because this is not self employment income.

In TurboTax, enter your form 1099-MISC and follow the interview until you arrive at the page titled Did this involve an intent to earn money. Answer that this did not involve an intent to earn money. The amount will be reported as Miscellaneous income and will not be subject to Self-employment tax.

Form 1099-MISC - Other income

It's money you received from something like a prize, award, lawsuit settlement, etc.
It's most often on a 1099-MISC (Box 3)
You report it on Line 8 of Schedule 1 of the Form 1040

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A

anelle83-yahoo-cAuthor

Thank you for the response! I unfortunately do not get the question about the intent to earn money. I do get this one:

Did the Bonus involve work that's like Jason's main job?

This information helps label this income on your return.

Yes, it involved work like TP’s main job or it was TP’s main job (either applies). See examples

No, it didn't involve work like TP’s main job.

It seems that any way I answer the questions, it labels it as self employment.

AliciaP1

In order to get to the "intent to earn money" question you have to answer the "Did the Bonus involve work that's like Jason's main job?" with a No. Also, you need to answer the How often did Jason get income for Bonus? screen as only in 2022. Then you see the Did the Bonus involve an intent to earn money screen where you should again answer No. This will classify the income as Other Income rather than Self-employed Income.

@anelle83-yahoo-c

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