I received a grant from AmeriCorps for 1 year of service. It was reported on a 1099-MISC. I used the money to pay for post-graduate education at Harvard University. How should I report this so that it's not taxable?
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A Segal (AmeriCorps) award is taxable income but it is not subject to self-employment tax. It should appear on Form 1040, Schedule 1, Line 21, as required by the IRS. You will pay state and federal income tax on the amount. Please enter it as shown in the instructions below.
Because the award is taxable income, any tuition, fees, books, and supplies paid with the amount is eligible for education credits. If your Segal Award is reported on both the 1098-T and the 1099-MISC, enter the 1099-MISC as directed below, and your 1098-T as issued.
If you did not receive a 1098-T, when completing your education section, indicate that you did NOT receive a 1098-T and you will be able to enter your expenses without the form. Enter your 1098-T exactly as you see it on the form. Your qualified education expense includes all amounts paid to the school whether through scholarships, grants, student loans, or your own funds. Only the amounts you actually paid (not the amounts billed) qualify for the credit.
If
either box 1 or 2 does not reflect your total tuition expense, select What if this is not what I paid to this school? below
box 2 to enter the correct amount. Do not enter the taxable amount of the Segal Award.
To enter the 1099-MISC so that it does not prompt a Schedule C, take the following steps:
This will place the 1099-MISC on Form 1040, Schedule 1, Line 21.
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