Q. I cannot figure out if/how to over ride Turbo Tax to make it earned rather than unearned income for purposes of the 1040 itself. Any ideas?
A. As previously explained, it should to be entered as taxable scholarship. That's the "right way" to do it, in my opinion. I have answered this same basic question, dozens of times that way. This is less likely to wave a red flag than any other way.
The alternate, is to enter it as other earned income (line 1h of form 1040).
In TurboTax (TT)enter at (not at the 1099-MISC place):
- Federal Taxes tab
- Wages & Income
Scroll down to:
-Less Common Income
-Misc Income, 1099-A, 1099-C
- On the next screen, choose – Other income not already reported on a form W-2 or 1099
- On the next screen, choose – Other earned income (not earned income not reported on a W-2 or 1099)
-The next screen will be "Other earned income summary". Click on the "Add +" button
- On the next screen enter the amount and description, e.g. National lab stipend on 1099-Misc or maybe just Stipend
