I received a stipend payment for California's Mental Health Loan Assumption Program (through OSHPD) in which I receive a certain amount paid directly to my loan lender in return for 12-month employment at a non-profit mental health organization. I've received this stipend for the last four years and this is the first time I'm suddenly receiving a 1099-MISC from the state that awarded the stipend to me. I thought this wasn't taxable? How do I go about this? There's no way I suddenly need to pay $2500 in taxes....do I?? One suggestion included documenting it as a business expense, but TurboTax requires me to upgrade to a self-employed edition. I also don't want to do that if this really is taxable. Help!
