If you are performing any duties in conjunction with the stipend (e.g. teaching assistant, research assistant, student teacher, clerical work, etc.), then the payment is considered "self-employment income". This income is subject to both income tax and self-employment taxes
To enter your 1099-NEC, you may use this shortcut in TurboTax to get to the right page:
- Open your return.
- Search for 1099-NEC with the magnifying glass tool at the top of the page.
- Click on the Jump to 1099-NEC link at the top of the search results.
- Click Add a 1099-NEC.
- Enter the information as shown on your form.
- Follow the on-screen instructions.
- On the page titled Guess what? You can deduct expenses for the example work choose Yes, I have expenses to deduct.
- On the page titled Self-employed 1099-NEC Income select the Schedule C you are inputting this income for. If this is a new Schedule C for this year, you can add a new business on this screen.
To confirm your 1099-NEC was linked to your Schedule C, please follow the instructions below:
- Open your return.
- Search for Sch C with the magnifying glass tool at the top of the page.
- Click on the Jump to Sch C link at the top of the search results.
- On the page titled Your 2020 self-employed work summary, you should see your 1099-NEC listed with the corresponding amount.
- Click review next to the income from your 1099-NEC.
- Follow the on-screen instructions on the following pages.
