Either way puts it on line 1 of form 1040, where TT will treat it as earned income, for IRA contributions. If you worked for a college or non profit instead of a company, or it's a government grant, the income could be entered as taxable scholarship. Enter it in the educational expenses section, rather than the income section of TurboTax. This still puts it on line 1 of form 1040, but with the "SCH" code.
Alternatively , enter at: (this is the same as ErnieS0's method):
Federal Taxes Tab
-Wages and income
Scroll down to:
--less common income
---Misc Income, 1099-A, 1099-C..... (Press start)
-----Select START (or update) to the 1st choice titled "Other Income not reported on a W-2....." and Continue
-------Select YES to other wages received and Continue
----------Select CONTINUE on the "Wages earned as a Household Employee" screen (enter nothing here)
--------------Select CONTINUE on the "Sick or Disability Pay" screen (enter nothing here)
-----------------Select "Yes" on the "Any Other Earned Income" screen and continue
----------------------Select "Other" on the "Enter Source of Other Earned Income" and Continue
--------------------------In Description Box type "Stipend" and the amount. Click Done.
That puts the income on line 1 of form 1040, where it is treated as earned income., but without a code to identify it
Note: income on line 1 of form 1040 without a W-2 or line 1 code is a small red flag at the IRS, but easily explained if the IRS contacts you.
