Is this activity a qualified trade or business under section 199A?

Forum|Forum|1 year ago
February 8, 2025
1 reply
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I received a 1099 Misc for my school counseling internship paid for under the HB22-1220 Educator Stipend for the state of Colorado. Would this be a qualified business?

MAK70

Probably not. Under IRC section 162, an activity qualifies as a trade or business if your primary purpose for engaging in the activity is for income or profit and you’re involved in the activity with continuity and regularity. An internship is not intended to be continuous activity.

sethandsarahAuthor

Thank you. That is helpful. One more questions. Did I "materially participate" in this business? My internship was about 300 hours and lasted 4 months of 2024.

DianeW777

No, a stipend is not considered a trade or business as indicated by @MAK70. For this reason the stipend is treated as Other Income. Report the income using the instructions below.

Other Miscellaneous Income:

Sign into your TurboTax Online account
Go to Tax Home (left panel) Wages and Income section
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (----) and the amount
For TurboTax Desktop > Income > Scroll to Less Common Income > .......