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This would be considered taxable income since it was not used for eligible education expenses.
You would enter it as Other Income by taking the following steps:
The other answer may not be correct. It will put the income on line 1h of form 1040 (Other earned income).
But, I believe stipends should be reported as taxable scholarship. As such it should be entered in the education expenses and scholarships section (under deductions and credits, instead of income). After answering no to having a 1098-T, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship 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. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1.
If you still want to enter it as "Other earned income", here's a little more detail on how to do that:
In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other Income not already reported on a form W-2 or 1099.
- Several screens later, you'll reach a screen "any other earned income". Click yes to "Did you earn any other wages"
- On the next screen, "Enter source of other income", choose other
- on the next screen, Enter the description (e.g. Stipend) and amount.
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