1099-NEC for graduate student fellowship in 2021

According to the IRS:

"How you report any taxable scholarship or fellowship grant income depends on which return you file. Form 1040 or 1040-SR. If you file Form 1040 or 1040-SR, include the taxable amount in the total on line 1. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 1."

The Fellowship should have been reported on a W2 (including withholdings) or a 1099-MISC. 

Since they used 1099-NEC (Non-Employee Compensation) it will be difficult to enter into the TurboTax program without generating a Schedule C since this is indicating that the student is self-employed. 

Please make sure this is for a Fellowship and not as payment for independent contract work. 

Below is my suggestion:

Sign into TurboTax and continue through until you can start selecting "Wages & Income" located at the top of the screen

Click on Wages & Income

(If the program asks about your W2, select Skip for now )

Select answers to the following questions if necessary to move forward 

Click Add more income 

Scroll down to the VERY LAST option "Less Common Income" and click Show more

On this new drop-down list scroll down to the VERY LAST option "Miscellaneous Income" and click START 

On this new drop-down list scroll to the VERY FIRST option "Other income not already reported on a Form W-2 or Form 1099"

Click START

Select YES to the page titled "Other Wages Received" and Continue

Select CONTINUE on the "Wages earned as a Household Employee" screen (enter nothing here)

Select CONTINUE on the "Sick or Disability Pay" screen (enter nothing here)

Select "Yes" on the "Any Other Earned Income" screen and continue

Select "Other" on the "Enter Source of Other Earned Income" and Continue

In Description Box type "Fellowship reported on 1099-NEC" and the amount

The IRS instructions say to type SCH as the description, but you want the IRS to see what you did with the 1099-NEC. 

IRS PUB 970