Question

1099 MISC INCOME from a Teach for America Grant/Stipend

Forum|Forum|1 year ago
February 15, 2025
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How can I treat Line 3 "Other Income" on a 1099-MISC form received from Teach for America, which is a Grant/Stipend Award, in the most tax efficient manner. No work was performed or required to receive this Grant/Stipend. Is this taxable? Can I avoid paying self-employed FICA & SS taxes on this amount?

M

MAK70

Yes, your Teach for America grant is taxable income as income, but it is not self-employment income so you do not have to pay the self-employment (Social Security/Medicare).

In TurboTax, enter as Miscellaneous Income. Instead of enter it as a 1099-MISC, go to Miscellaneous Income, 1099-A, 1099-C under Less Common Income. Choose the Other reportable income. You can enter "1099-MISC Teach for America" as the description and then the amount. It will then go to Schedule 1 and Line 8 of your 1040.