The Americorps Award is
handled a bit differently than most education benefits, and the 1099-MISC entry
is different.
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 student loan interest paid with the funds can
be deducted. Use the 1098-E entry under Deductions and Credits to enter
the student loan interest.
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