I got the student teaching support grant money and receivced a 1099 nec from the school but no schedule c form

[cjp663339]

The grant was not income it was awarded for being a student teacher in pa in 2025 which i applied and received. I was not a employee of the school district but turbo tax wants me to file a schedule c as if I were self emplyed

[ReneV4]

To report this Form 1099-NEC that was a student teaching support grant and not self-employmed income in TurboTax, do the following:

1. Go to Deductions & Credits in the Federal section
2. Select Education and click the drop-down arrow
3. Select Expenses and Scholarships (Form 1098-T)
4. "Did _ have any of these common situations in 2025?", select Received a scholarship, grant or other aid, Continue
5. "Did_ get a 1099-T?", select No, then Continue
6. Select "_qualifies for an exception", then Continue
7. Enter the school info, leaving the payments for tuition blank, then Continue past the school info until you reach, Add any other financial aid
8. Enter the amount of the funds received in the Other scholarships, grants, or fellowships box, Continue
9. Check the "_ used it to pay for room and board" box when you reach, "Did _ have any of these situations for their scholarship or grant?"
10. Enter the amount received as the amount used for room and board, then Continue

Following these steps ensures the stipend is correctly reported as taxable scholarship income used for room and board, which are considered non-qualified expenses. This will satisfy the IRS requirement to include it in earned income without incorrectly triggering self-employment tax.

[Edited 4/16/26 11:45 a.m.] @cjp663339 

[Hal_Al]

"I was not a employee of the school district."

Correct. If you were, you would have received a W-2.  It appears that the school district is treating you as an independent contractor.  This means that the income probably should be reported as self employment income on Schedule C.  The IRS considers anything on a form 1099-NEC to be self employment income and will be looking for it to be reported that way.

On the hand, you call it "student teaching support grant money". Grants/stipends are usually reported as taxable scholarship, which is better than the  option of reporting it as other income. "Other income" is taxed as unearned income. 

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section). Answer yes to having education expenses and working on a degree, even if you’re not. That’s needed to get to the scholarship entry screen. Check received scholarship, grant or aid at the Did you have any of these common situations screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational  expenses".  So, this is how you tell TT that it is taxable. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1.

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450).  It is not earned income for the kiddie tax and other purposes (e.g. EIC).  For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.

Taxable scholarship goes on line 8r of Schedule 1, from which TT treats it as hybrid income