Question

I received a 1099-NEC for a living expense stipend - how to report this?

Forum|Forum|1 year ago
March 24, 2025
1 reply
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Hello,

In 2024, I received $10.5k from my university for a “living expense stipend” to reimburse the living expenses during an internship I had in 2023 with company C. The terms of receiving this was that I join the company full time post-graduation, which I did. I was given a 1099-NEC from the university but they specified the money was provided by company C.

I'm using TurboTax, and I am unsure if I should I select the "sporadic activity or hobby" option? If I select "non of these apply" it has me fill out a Schedule C. What is the right way to go about reporting this living stipend?

PatriciaV

Employee

Yes. Check the box for "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby."

This choice avoids the need for Schedule C and will report the income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.

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