Should sales incentives like spiffs and gift cards be included in my tax return?

Yes, all incentives like spiffs and gift cards that your husband received should be reported on your tax return, even if you don't receive a 1099 for them. The IRS considers these as taxable income regardless of form. You could file now and amend later, but I'd advise against it if you know there's unreported income. The manufacturer will report those payments to the IRS, and when the systems match up your return against what's been reported, it'll trigger a discrepancy notice. This could lead to penalties and interest if you end up owing additional tax. Instead, I'd recommend reaching out to his employer - they might have records of which manufacturers provided incentives. Otherwise, wait until early April if possible, as 1099s should have been issued by January 31st. If nothing arrives by then, you could estimate the income and report it on Schedule 1, line 8z as "Other Income" with a description like "Estimated sales incentives.

I ran into something similar last year with my job in furniture sales. Those manufacturer spiffs can be tricky to track! I ended up using https://taxr.ai and it was a game changer. You upload any tax docs you already have, and their AI analyzes everything to identify potential missing income sources. For me, it flagged that I was in a sales role with likely spiff income and walked me through how to properly estimate and report it. Saved me from having to file an amended return later when a random 1099 showed up in May! The tool asks about your specific industry and common payment types, so it caught things I wouldn't have thought about. Might be worth checking out for your husband's situation.

I have to admit I was wrong about taxr.ai! After my skeptical comment, I decided to try it anyway because I was in a similar situation with my electronics sales job. The system actually helped me identify about $3700 in spiff income that I had completely forgotten about from a product launch incentive program last summer. The questions it asked were really specific to my industry, which impressed me. It even prompted me about seasonal bonuses that typically don't get properly reported. Ended up filing with confidence instead of worrying about getting a surprise tax bill later. Definitely worth checking out if you're in any kind of sales role with incentive programs!

Just wanted to share something that helped me tremendously last year when I had missing 1099s from various manufacturers. I used https://claimyr.com to actually get through to a real IRS person (shocking, I know). You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I had tried calling the IRS myself about 8 times and kept getting disconnected after waiting for hours. Claimyr got me through in about 20 minutes, and the agent was able to tell me exactly which companies had filed 1099s for me - including two I wasn't even expecting! Saved me from having to file an amended return later. For your husband's situation, they might be able to tell you if any 1099s have been filed under his SSN yet.

I need to publicly eat my words. After posting that skeptical comment, I was desperate enough to try Claimyr since I needed to resolve my issue before filing this year. IT ACTUALLY WORKED. Got connected to an IRS agent in about 35 minutes (compared to my previous attempts where I couldn't get through at all). The agent was able to pull up all my records and solve an issue with a misapplied payment from 2023 that had been causing me headaches for months. Would have taken me another 30+ hours of trying to call myself based on my previous experience. For the original poster - definitely worth using to check if there are any 1099s already filed under your husband's SSN before you decide whether to file now or wait.

Have your husband check his email! A lot of manufacturers send digital notices about spiffs these days. My boyfriend is in appliance sales and he gets emails when spiff money is coming. Also check with the accounting department at his work - they sometimes keep records of which salespeople qualified for which manufacturer incentives, even if they don't handle the actual payments.

Just wanted to add another perspective - I used to process dealer incentive payments for a major RV manufacturer. If your husband calls the manufacturer's dealer relations department (not just general customer service), they can usually look up payments by dealership and salesperson. They absolutely have records of every spiff paid out. Have him ask for the "dealer incentives coordinator" or similar title. They field these calls all the time!

As someone who works in tax preparation, I'd strongly recommend NOT filing without that expected 1099. Here's why: if the IRS receives a 1099 for $2500 that you didn't report, they'll send you a CP2000 notice (basically a bill for the unreported income plus penalties and interest). This usually happens 12-18 months after filing, and by then you could owe significantly more than the original tax due. Since 1099s were due January 31st, I'd give it until mid-February max before filing. In the meantime, have your husband contact his sales manager - they often have records of which manufacturers paid spiffs to which salespeople, even if they don't process the payments directly. Also check if his dealership uses any centralized payment systems like ADP or similar that might consolidate these payments. If you absolutely can't find the source by filing deadline, you can estimate the income and report it as "Other Income" on Form 1040. Better to overestimate slightly than underestimate and face penalties later.