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Education stipend and scholarship income get entered on line 8, not line 7.  Line 7 is for capital gains and a stipend does not fall into this category. 

You can enter it by selecting the following

• Income
• Show More next to Less Common Income
• Start next to Misc Income
• Start next to Other Reportable Income
• Enter the income as Other Taxable Income with a description of Taxable Stipend from XXX college and the Amount

This will enter the income on line z of her Schedule 1 with a description which will then flow to line 8 of the 1040.  It will be taxed as ordinary income instead of self-employed income. 

If this were scholarship income, it would be entered in the education section of TurboTax instead of Miscellaneous income.

To enter scholarship income select the following:

• Federal 
• Deductions and Credits
• Under Education select Expenses and Scholarships
• Enter your information for your scholarships and expenses

Scholarship and Stipend Taxation