Thank you. After weeks of doing as deep of a dive was possible on the matter, I believe this in fact the best way to go. It does make me a bit uneasy to not have that 1099-misc "on the record" but I...
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Thank you. After weeks of doing as deep of a dive was possible on the matter, I believe this in fact the best way to go. It does make me a bit uneasy to not have that 1099-misc "on the record" but I don't know how computer checks and balances go at the IRS so hopefully the actually total income matching is what matters? I will also note I called Turbo Tax on this issue, and they originally said to put it under other income as a negative number, and then when I said that made no sense they changed it to putting it in as a positive number. I do hope they not only get a better work around (you actually have to answer questions falsely to do this, such as suing a line that asks you to enter the other scholarship if you did not get any forms) and more informed people to help out (I have called more than once, and the answers here in the community on this matter are contradictory/incomplete in many cases). Having said that I am glad I found two people here that gave this answer as it makes the most sense. Thank you.