AmyC
Expert Alumni

Get your taxes done using TurboTax

The 1099-NEC is not self-employed income for scholarship. You will want to enter the income and subtract the amount used on Qualified Education Expenses - Internal Revenue Service.

 

First you will enter the 1099-NEC as sporadic or hobby income rather than self-employed. Follow these steps:

  1. Open your return to the federal income section
  2. Select income from Form 1099-NEC
  3. Enter the information from your form
  4. Continue
  5. Describe the reason 
  6. Continue
  7. Does one of these uncommon situations apply?
  8. Select not earned, sporadic, hobby - the screenshots different - 
    1. online, select hobby 
    2. desktop chooses sporadic
  9. Continue
  10. See the NEC summary
  11. Done

Second, remove the qualified expenses.

  1. Open to federal income
  2. Locate Miscellaneous Income, 1099-A, 1099-C, Start
  3. Scroll to the bottom
  4. Other reportable income, Start
  5. Other taxable income?
  6. Select YES
  7. Description 1099-NEC for education expenses
  8. Amount, enter your negative amount, use a minus sign in front.
  9. Continue
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