Q. If I put it under scholarship in the education section with the other 1098T information, will there be an issue since it is not real scholarship or grants?
A. Yours is a very common question in this forum. The most frequent reply is to report stipends as scholarships.
Q. Will IRS question the return if I don’t enter it as Form 1099 NEC for the stipends?
A. No, because there is no way to enter a 1099-NEC for stipends.
But, there is a chance of hearing from the IRS because it was not reported as self employment. The IRS considers anything on a form 1099-NEC to be self employment income.
