If your son used the scholarship money reported on the Form 1099-MISC for qualifying education expenses, it would not be taxable. He must enter the Form 1099-MISC to report the income then enter a negative amount to income to cancel it out. He should enter the Form 1099-MISC in the Wages and Income section, then Other Common Income, then Income from Form 1099-MISC. Indicate that the income was only earned in 2024, was not associated with his job and he did not have a profit motive to earn the money. That way it will be reported as other income as opposed to self-employment income.
Then make make an adjusting entry to cancel the income out as follows:
1. From the Federal menu in TurboTax find Wages and Income
2. Find Less Common Income
3. Choose Miscellaneous Income, 1099-A, 1099-C
4. Choose Other Reportable Income
5. Enter a description of the adjustment and the amount as a negative number
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