Q1) Do I provide the school’s name here? Also, my school uses a different address on 1098-T vs 1099-NEC so which address do I use?
A1). Yes, enter the school name and 1098-T address.
Q2) “Enter the Amount paid to the university in 2024”. Should I enter zero here since I have selected “No” to receiving 1098-T or do I need to enter the 1098-T amount here?
A2) Leave it blank
Q3) “Was any of the scholarship income not designated to pay 2024 education expenses”? Should I select “Yes” or “No” here?
A3). Skip it if you can. Answer no, otherwise. All you need to do is get to the scholarship screen. Skip everything else
Q4) “Did You Ever Receive the American Opportunity or Hope Credit”: Do I answer “Yes” and provide the number of years here even though my parents have been claiming AOTC on their returns?
A4) Skip or answer no.
Q5) Also, is there anywhere in TT that I can indicate the stipend came from a 1099-NEC? Will I get into trouble with the IRS? Is there any way to prevent the document matching error?
A5) Yes, but it's messy. See below. The fact that the 1099-NEC amount shows up on the forms should be enough to keep the IRS at bay. Yours is a common situation.
If you received an erroneous 1099-Misc or 1099-NEC
Report the income as misc line 8z, Schedule 1 income (enter in TurboTax at the 1099-NEC screen and identify it as sporadic income ["did not involve intent to earn money"]).
Then enter a line 8z deduction, for the same amount. In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other reportable income - Answer yes to Any other Taxable Income -On the next screen, Enter the number with a minus sign (-) in front. Briefly explain at description. Call it Scholarship income reported on line 8r, Sch 1
