The Segal (Americorps) Award is handled
a bit differently than most education benefits.
You probably received a 1099-MISC for the amount you used. To enter the 1099-MISC, click on Federal
Taxes (on the top menu bar) and then Wages and Income. When the page
opens, click "Jump to full list” if it is not displaying the full list of
income items. Scroll down to the very last item, Less Common Income and click “Show More” to expand the list. Select "Miscellaneous Income, 1099-A, 1099-C".
On the page that opens, again choose the very last item, "Other reportable income". Reply
that you did receive this type of income, then enter "Americorps
1099-MISC" for a description and the amount. This will put the
income on Line 21 of your 1040, 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.
Because the award is taxable income, any tuition, fees, books, and supplies
paid with the amount is eligible for education credits. If your Segal Award is reported on both the
1098-T and the 1099-MISC, enter the 1099-MISC as directed above. When completing
your education section, indicate that you did NOT receive a 1098-T and you will
be able to enter your expenses without the form. Do not enter the taxable
amount of the Segal Award.
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