Solved: Grant money came in 1099 Misc. Is this filed as income or grant under deduction?
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htunzawoo
New Member

Grant money came in 1099 Misc. Is this filed as income or grant under deduction?

 
1 Best answer

Accepted Solutions
Carl
Level 15

Grant money came in 1099 Misc. Is this filed as income or grant under deduction?

That's not a grant. It's a stipend. The two are completely separate things. It's treated as taxable income *initially*. If it's used for something that is tax deductible, (such as teacher/educator expenses) then you'll be able to deduct the amount used for such expenses under the deductions and credits tab in the educator/teacher expenses section, when you get to that point in the program.
Here's how to enter that 1099-MISC so that it's not treated as self-employment income.
Reporting 1099-MISC (box 3) that is not self-employment income
Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
Enter the 1099-MISC exactly as printed, and then Continue.
Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.
Select None of these apply, then Continue.
Select No, it didn’t involve work….. and Continue.
Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
Select No, it didn’t involve an intent to earn money, then Continue.
Select NO, then Continue.
Click the DONE button, and that does it.

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3 Replies
Carl
Level 15

Grant money came in 1099 Misc. Is this filed as income or grant under deduction?

Grant for what? In what box on the 1099-MISC is the income reported?
htunzawoo
New Member

Grant money came in 1099 Misc. Is this filed as income or grant under deduction?

It's called Early Educator Stipend Award. Box-3.
Carl
Level 15

Grant money came in 1099 Misc. Is this filed as income or grant under deduction?

That's not a grant. It's a stipend. The two are completely separate things. It's treated as taxable income *initially*. If it's used for something that is tax deductible, (such as teacher/educator expenses) then you'll be able to deduct the amount used for such expenses under the deductions and credits tab in the educator/teacher expenses section, when you get to that point in the program.
Here's how to enter that 1099-MISC so that it's not treated as self-employment income.
Reporting 1099-MISC (box 3) that is not self-employment income
Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
Enter the 1099-MISC exactly as printed, and then Continue.
Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.
Select None of these apply, then Continue.
Select No, it didn’t involve work….. and Continue.
Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
Select No, it didn’t involve an intent to earn money, then Continue.
Select NO, then Continue.
Click the DONE button, and that does it.

View solution in original post

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