HOW DO I REPORT MICHIGAN FUTURE EDUCATOR STIPEND?

It's taxable, but not self-employment.

Scholarships can also be reported as earned income, which is more advantageous than as "other income". The problem is they changed where scholarships are listed on Form 1040, but they didn't change the forms that scholarship are reported on. 

It's a bit tedious, but I suggest you enter this way-

a) Enter Form 1099-MISC so the IRS can match it
b) Back out the income so you are not double-taxed

c) Enter the amount as scholarship

To do that-
Enter the 1099-MISC Under
Wages & Income
Other Common Income
Income from Form 1099-MISC    START
Enter the 1099-MISC as it was reported, Type "Scholarship" in for the description, 

Select "None of these apply" for uncommon situations, 
"NO" not like main job, 
Only got it in 2024,  
"NO" no intent to earn money, 
DONE
These are TurboTax questions, not IRS questions. These need to be the answers to let TurboTax know it is not Self-Employment.
THIS GETS THE FORM ON YOUR RETURN, now zero it out

Wages & Income

LESS COMMON INCOME

Miscellaneous Income, 1099-A, 1099-C    START 

Scroll all the way down to the LAST option- Other reportable income   START 

Type "Scholarship reported twice" or some other description the IRS will understand and enter the amount AS A NEGATIVE AMOUNT (put a minus sign (-)  in front of the number

Done

The 1099-MISC as well as the negating entry will both be on Schedule 1 line 8z

Lastly go to 

Deductions & Credits 
Education 

Expenses and Scholarships (Form 1098-T)

If you entered a 1098-T in her TurboTax program, continue to the screen where you can add the stipend scholarship 

If you are not entering Form 1098-T, continue through that section ignoring the questions about Form 1098-T until you get to that screen. 

Be sure to enter the amount here 

The scholarship will be on Schedule 1 line 8r 

The 1099-MISC and negative entry will both be in Schedule 1 line 8z

HERE is how to look at your tax return online