Please see this answer from GeoffreyG.
The stipend you received for an internship is indeed considered taxable income. As such, you do (legally) need to declare it and report it on your tax return.
This can be accomplished in the TurboTax program, both in the online (web-based) software as well as in the desktop versions of the program.
The mechanical steps to do so are outlined at the following AnswerXchange post from a few years ago: stipend
Those general processes remain accurate for the current (2016) tax year of the TurboTax program (i.e., either of those described will work just the same).The notation "SCH" will appear on Line 1 of Form 1040. The good news is that, although your stipend income is taxable as ordinary income, at least you do not have to pay Social Security and Medicare taxes on it, as you would if the income were alternatively taxed as ordinary W-2 wages.
