I am in an electrical apprenticeship program in California, our training center partnered with a program called EricaPay to help with the cost of Childcare, supplies and expenses while in the apprenticeship. This money ($9,999.96) is/was a grant from the state, but I am receiving a 1099-NEC.
TurboTax seems to guide me to file this as Self-employment income and expenses. When I do this, it all but eats up my $4000 child credit (2 kids) + other credits/deductions which does not seem right. In my mind it should be taking 10.2-20% out of the $9999.96.
The money did not come from a business that I operate so it doesn’t seem right to “create” a business and “write off” the food + diapers.
Is there somewhere to add this to income as a grant or something.
Happy to provide more information if needed
