@Hal_Al
After further consideration, I have a follow up regarding Choice #2.
I discovered that I can go to Forms, access the Wages, Salaries & Tips Worksheet, and enter the stipend amount on Line 9b with a description. This forces TurboTax to calculate the standard deduction using her entire earned income. Everything looks good now.
I will then print off the forms for File by Mail and attach the 1099-MISC with a note as you mentioned.
Does this seem like a good way to handle it?
Thanks for your help!!!
