@nd13 wrote:
Hi, I'm having a similar problem here when trying to file. I am a graduate student that is compensated through a 1099-NEC for my stipend. I am NOT self-employed and was told to make sure that this is not listed as a self-employment or on a Schedule C, since that will incur self-employment taxes that do not apply to me. When I indicate there are no deductions, TT does not re-classify this 1099-NEC as business income, which is great.
However, when I enter the amount I've contributed to my Roth IRA, it says I have "excess contribution" because it is not counting the amount listed under the 1099-NEC as income. Any advice here? Can I just not include the Roth IRA on my taxes? I was under the impression that it should not change the taxes owed anyway, however when I delete the Roth IRA entry, it reduces the amount of taxes I owe in the top corner.
It appears you need to enter the income as a scholarship in the education section of the Deductions page, and not as 1099 income on the income page.
quoted from https://ttlc.intuit.com/community/retirement/discussion/graduate-student-roth-ira-contribution/01/18...
To report stipend income in TurboTax, you must visit Deductions and Credits, Education Expenses section. You must answer all the questions, the taxable amount will be computed as the excess of your scholarship over the qualified education expenses.
- Federal Taxes
- Deduction & Credits
- Scroll down to Education
- Select Expenses and Scholarships
- Follow the prompts… It will be somewhat confusing as you are answering the questions as if you claim an education credit… answer the initial questions and select that you did not receive form 1098-T. You will be asked for school’s name and address, just fill out the program information you are in... You will eventually see a screen "Did (your name) receive a scholarship or grant in 2020? Please enter your stipend in other Scholarships/Grants/Fellowships; this will ensure that the stipend is taxable on line 7 form 1040 as wages.
Once done, you may review your form 1040 and to verify that line 7 of the form looks correct. You may do so prior to paying for the program:
- From My Account drop down, select Tools (you must be logged into your tax return)
- Select View Tax Summary
- Select Preview my 1040
