Q. At the end of the year, I received a 1099 NEC for a monthly stipend. Is it considered a grant/scholarship?
A. Yes, for tax reporting purposes.
Q. How do I report this on my taxes?
A. The 1099-NEC should not have been issued for a stipend and, as you already see, that is a problem.
The simplest thing is to not enter the 1099-NEC, at all. Instead, enter the stipend amount at :
-Deductions and Credits (not in the income section)
- Educational Expenses and Scholarships
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 do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.
