How to report 1099-misc as a full time student?

[tingyu163]

I am a full time student now. I did an internship in 2015. I got a 1099-MISC from my boss. My income in last year was less than $9000. What should I do now?

[Carl]

The fact you were a student doesn't matter.

Reporting 1099-MISC (box 3 or box 7) 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.

[ah100]

Hello, I am a trainee in a lab I received stipends to cover living expenses. I got a 1099 MISC, but not sure if I should report it as self-employment? in addition, I received it for two years, so whenever I mention that on Turbotax, it treats me as self-employed. I appreciate your help. thanks

[DianeW777]

It depends.  If the trainee position is not part of your education and you actively conduct this activity for a profit, and you do not consider it a hobby or nonbusiness income then there are two options.

1. Report it as self employment because it's an ongoing business concern as a subcontractor,  OR
2. Report it as 'Other' income on your return.
3. Use the links below to report the income:  
   1. How do I report income from self-employment?
   2. Other Income:
      1. Open your return.
      2. Go to Wages & Income
      3. Scroll to the bottom under Less Common Income select Start (or Update) for Miscellaneous Income.
      4. Select Other reportable Income > Enter a description and the amount

Taxable - Topic No. 421 Scholarships, Fellowship Grants, and Other Grants

You must include in gross income:

• Amounts used for incidental expenses, such as room and board, travel, and optional equipment.
• Amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant. However, you don't need to include in gross income any amounts you receive for services that are required by the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college.
  • What's the difference between self employment and other income?

@ah100 

[ah100]

Thanks for the reply. 

Indeed I am finding hard time defining the category of my stipends as it is not part of a grant I received but rather, it is living expenses money I received to cover my training period which was for two years and I don’t have other source of income
what do you think the best way to categorize it? And if I report it as self employment what can I consider as expenses to deduct?

thanks

[AbrahamT]

In that case, it is considered taxable income and you would report it on your tax return as "Other Income" without taking any expenses against it.

[DavidJohnson1]

My daughter received a large 1099-MISC that were awards and fellowships granted in 2023. It was ALL spent on tuition to her university. Should the amount be reported or is this zero, per IRS Topic 421?

[JamesG1]

IRS Tax Topic 421 here, states:

If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:

• You are a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
• The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.

Scholarship income is reported under Education expenses.  At the screen Here's your education summary, select Edit to the right of Scholarships/Grants.

You may not have established your daughter as a student.  In TurboTax Online, follow these steps.

• Click on Federal
• Click on Deductions & Credits.
• Scroll down to Education.  Click the down arrow to the right.
• Select Start / Revisit to the right of Expenses and Scholarships.
• You will answer several questions about the student, the school and the student's IRS form 1098-T.

[Hal_Al]

Q Should the amount be reported or is this zero, per IRS Topic 421?

A. Both, sort of. 

As JamesG1 said, you enter it (report it) , in TurboTax, as additional scholarship in the "Education Expenses and Scholarships" section (do not enter it at the 1099-Misc income place).  Then you enter the expenses that it was used to pay for.  Some or none of it may be taxable. The taxable amount will show on line 8r of Schedule 1. Room & board are not qualified expenses for a scholarship to not be taxable.