Self employed

No. The stipend should not be entered in Education and two 1099-NEC entered.

I agree with @ellyragone that the stipend should be entered as a one-time NEC. According to IRS Pub  970, page 5 states, "stipend payments not reported to you on Form W-2 are treated as taxable compensation for IRA purposes. These include amounts paid to you to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in this chapter. Taxable amounts not reported to you on Form W-2 are generally included in gross income."

 

For more information on tax free  scholarships or fellowship refer to page 5 of IRS Pub. 970.

 

Use the Table below to figure if your stipend is taxable or should be excluded from your gross income.

 

 

To enter the college stipend reported on 1099-NEC:

 

  1. Open your TurboTax account.
  2. In the search box enter "1099nec."
  3. Take the "Jump to 1099nec" link.
  4. On the Screen, " Did you get a 1099-NEC," select "Yes."
  5. Add a 1099-NEC.
  6. Enter the information.
  7. Enter the reason for the 1099-NEC.
  8. Select, "This is not money earned as an employee…"
  9. Done.

 

[edited 03/12/2023 1:31 PST]

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