Yes, you can check that this is a "manufacturer's incentive" in the TurboTax screen that asks for uncommon situations. There is no checkbox for your specific payment, but the interview screen is there to determine how the income is reported, and checking manufacturer's incentive will ensure that the income is reported as "Other Income from box 3 of 1099-Misc" on your tax return. There is no specific designation for "manufacturer's incentive" on the tax return. This is simply an interview question.
As an alternative, you could check None of these apply, and you'll be asked a series of follow-up questions. You'd reply that it doesn't involve work like my main job, that you got it in 2023, and that it did not involve an intent to earn money (as opposed to being a business of yours). If you do it that way, you get the same result. The income is reported as "Other Income from box 3 of 1099-Misc" and winds up on line 8 of your Form 1040.
Neither approach is incorrect, and both allow you to prepare an accurate return.
As far as your tax rate is concerned, 1099-MISC other income is not taxed at a different rate than other ordinary income. I would make sure that this income is not still being treated as business income, in which case you would be adding Self Employment Tax to your regular income tax.
If you are using TurboTax Online, follow the steps here to preview your 1040. Check to make sure that there is no entry on line 23 for Other Taxes.
If you are using a Desktop TurboTax product, follow these instructions.
You may have to delete that 1099-MISC and re-enter it to make sure that you are reporting the income correctly.
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