TurboTax Free Edition does not support Form 1040 Schedule 1 which is the Schedule needed to report your internship stipend. You will need to purchase Turbotax Deluxe to report your internship stipend.
To enter your internship stipend in TurboTax Deluxe follow these steps.
With TurboTax open select Wages & Income click on I'll choose what I work on.
Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C
On the next page select Other reportable income
On the page Other Taxable Income enter internship stipend in the description.
This will put the income on Form 1040 Schedule 1 Line 21 as required by the IRS. You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.
