Thanks, @KrisD15 . Re: "If the advantages of reporting the 1099-NEC as a Scholarship are not relevant to the student's situation, you can enter the 1099-NEC as a "one-time thing"
"Other Income Section"
"Income from Form 1099-NEC"
Describe it as a Stipend
Select "This is not money earned as an employee or self-employed individual"
This will put the amount on Schedule 1 Line 8z."
I don't think the advantages matter, so I thought I'd follow this one-time thing recommendation so that I just report the NEC and avoid any potential problems. But when I do, she has to pay taxes on this stipend. Since it is a scholarship/stipend and should be subject to the $12,950 filing requirement, it seems the best option is to do the offset option - that is, put it in education and also do two NEC entries, one for the amount and one for a negative of the amount. Am I understanding you correctly? Thank you all so much!
