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Education
I received a 1099- MISC form for the loans that were paid out for my college degree.
That's where you're wrong. THe 1099-MISC is *NOT* for money you borrowed. Borrowed money is not your money. Never was, is not now and it never will be. Not ever.
The 1099-MISC is for the *GRANT* that the foundation (whatever foundation that is) gave to you for your qualified education expenses. It has NOTHING what-so-ever to do with a loan of any type. Handling this in TurboTax is easy.
First, you'll enter the 1099-MISC to report it as income.
Second, you'll enter it as a scholarship/grant in the education section (assuming it is *NOT* included in box 1 of your 1098-T if you recevied a 1098-T from the college.) Then the program will ask you if any of the scholarship/grant money you received *AND* reported in the education section was reported to you on any other form such as a W-2 or 1099-MISC. You'll answer that question YES, then enter the amount reported on the 1099-MISC so that it won't be double-counted.
Reporting 1099-MISC box 3 that is not self-employment income
Under the Wages & Income tab (or Personal Income tab) scroll down to Other Common Income and elect to start/update Income from form 1099-MISC. Then click YES to indicate you have a 1099-MISC.
Enter the 1099-MISC exactly as printed, and then Continue.
Enter the reason you got this money – be it scholarship, bonus, streaking butt naked across the 50 yard line of the super bowl, whatever. Then continue.
Select None of these apply, then Continue.
Select No, it didn’t involve work….. and Continue.
Select ONLY the tax year for which this specific 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Select no other year. Then Continue.
Select No, it didn’t involve an intent to earn money, then Continue.
Select NO, then Continue.
Click the DONE button, and that does it.
When you get to the education section, if that 1099-MISC money is included in box 5 of the 1098-T, you will *NOT* enter it again in the education section.
If that 1099-MISC money is *NOT* included in box 5 of the 1098-T then you *WILL* enter it in the education section as a scholarship.
Then you'll come to the below screen where you'll select the *YES* option and continue.