H! I'm a grad student who received the PHEAA Student Teacher Stipend. I'm not sure how this gets filed. The LEA I did my student teaching sent me a 1099-NEC. Help?

Forum|Forum|1 year ago
February 10, 2025
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Intuit gives me various options to select for type of income, none of which actually describe the situation properly. I wasn't self-employed at the time; I was accumulating hours to go toward certification.

mglauner

They should have issued you a 1099-MISC, as the recent usage of the 1099-NEC form is specifically for self-employment.

However, you can add this income to your return as Other Reportable Income.

Select Income & Expenses.
Scroll down to Less common income and select show more.
Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
On the page Let's Work on Any Miscellaneous Income, scroll down to the line Other reportable income and click start.
On the page Any Other Taxable Income select yes.
On the page, Other Taxable Income enter the description and amount.
Select continue.
Select done on the next page

Be sure to save your 1099-NEC with your tax documents, in the event you are questioned where you entered the income.

Hal_Al

Employee

The method described by MarilynG1 is one way to enter it. It will be entered as other income on line 8z of Schedule 1. It is treated as unearned income.

If you are a dependent, on someone else's tax return, you get a reduce standard deduction if you have unearned income. So, you may pay more tax that way.

Stipends are best treated as taxable scholarship.

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).

After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1.**

The IRS considers anything on a form 1099-NEC to be self employment income. If you try reporting the income as anything else, you chances of hearing from the IRS are higher. They want you to pay social security and Medicare tax (in the form of "self employment tax"), in addition to the income tax.

If you are using download TT, instead of online, there is a way to enter scholarships in the income section.

*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.

**Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $14,600 filing requirement (2024) and the dependent standard deduction calculation (earned income + $450). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.