I received a letter for educational stipend disbursements for 2018 and no other tax documents. How is the stipend recorded under Turbo Tax?

[edward1]

I received a letter for educational stipend disbursements for 2018 and no other tax documents. How is the stipend recorded under Turbo Tax?

I did not receive 1099-MISC for the stipend disbursements only a letter stating the total amount of stipend disbursements.

[Leonard · Accepted solution]

To enter your educational stipend in TurboTax Deluxe follow these steps.

• With TurboTax open select  Wages & Income. 
• Scroll down to Less Common Income.
• Select Miscellaneous Income, 1099-A, 1099-C.
• On the next page select Other reportable income.
• On the page, Other Taxable Income enter Educational Stipend in the description. 

 This will put the income on Schedule 1 Line 8 of your Form 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.

[Edited 03/11/2020 | 10:27 am PDT]

[Hal_Al]

It may be better to report the income as "Scholarship" income rather than "other income" on line 21 of form 1040 (Schedule 1).  This is particularly true if you can be claimed as a dependent by your parents.
for how to enter, see <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/users/5ce6cdba-5e31-413e-b1a3-e81cc6a615f2">https://ttlc.intuit.com/users/5c...>

Scholarship income is reported on line 1 of form 1040, with the notation "SCH" and counts as earned income for purposes of the standard deduction calculation for dependents. It is not earned income for the EIC or qualifying for IRA contributions

[edward1]

1) Line 21 of Form 1040 for 2017 and earlier is "Other Income". For 2018, the revised Form 1040 Line 21 is "Amount Applied to 2019 Estimated Taxes".

2) Per Publication 970, scholarships are 100% taxable income if student is NOT a degree candidate at an eligible educational institution.  "Other Income" is included in line 1 of 2018 Form 1040. Amount of scholarship is entered on "Dotted Line of Line 1" and labeled "SCH <Amount>" because scholarship income is NOT subject to social security withholding.  Refer to Worksheet 1-1 of Publication 970.

[Hal_Al]

Line 21 of Schedule 1 is other income.
To get scholarship incom on line 1 of form 1040, enter it at educational expenses, not at other income

[edward1]

Good feedback and thanks for the clarification Hal_Al