@taxrookie999
Duplicate post. See https://ttlc.intuit.com/community/taxes/discussion/1099-nec-scholarship/01/2877783/highlight/false#M...
We need to know a little more. Is the recipient somebody else's dependent (e.g. yours)? Why did he get this "scholarship"? What makes it a scholarship and not something else. Who paid the scholarship and why. Why did they issue a 1099-NEC.
It's an easy work around to enter a 1099-NEC as Misc (other) Income)*
After entering your 1099-NEC, you will encounter a screen titled "Does one of these uncommon situations apply". Check the box "This is not money earned as an employee or self employed individual; it is from sporadic activity or hobby".
Checking that box will put the income on line 8z of Schedule 1 as "other income" and identify it as coming from a 1099-NEC. It is treated as unearned income.
Entering it as scholarship is trickier. Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $12,950 filing requirement and the dependent standard deduction calculation (earned income + $400).. It is not earned income for the kiddie tax and other purposes (EIC. IRA contributions or additional child tax credit).
