Instead of using "Hobby" on NEC 1099, I plan to go with your original posted option which make more sense and seems accurate.
Reporting:
Taxable, non-W-2 stipends are usually reported on Form 1040, Schedule 1, Line 8r as "Scholarships and grants not reported on Form W-2".
Reason :
This was a short term training program internship where a stipend was given for a fulltime student.
Showing this as taxable scholarship increases the Std deduction for my "claimed dependent" student which reduces his taxes. If I take the Hobby option his taxes go up since the Std deduction is reduced.
I think TT should provide an additional option "Internship/Fellowship Stipend for Students" to add to these 6 options when entering the 1099 NEC form which will directly put the amount under Sch1 8r without going thru Expenses and Scholarships (Form 1098-T) section.
Thanks for your help and support.
