topic Re: 1099-Misc for internship stipend in Get your taxes done using TurboTax

1099-Misc for internship stipend

sam2022_ — Mon, 09 Mar 2026 11:06:25 GMT

I have a 1099-misc form with box 3 filled out. I am a college student and this stipend was for work done in an internship (but the internship was done outside of school). Where am I supposed to add this form? When I try adding it, it taxes me for social security and medicare, which I don't think is supposed to happen. Or it gets the kiddie tax, which I thought was only for unearned income.

Re: 1099-Misc for internship stipend

PattiF — Mon, 11 Apr 2022 23:53:02 GMT

In TurboTax Online:

Go to Other Common Income in the Income & Expenses section,
Click Start at the 1099-MISC box
Enter info from 1099-MISC,
Describe the reason for this 1099-MISC, and Continue
Does one of these uncommon situations apply?, Choose None of these apply and Continue
Check that No, it didn't involve work like my main job
How often did you get income for internship stipend, Choose I got it in 2021 and Continue
Did the internship stipend pay involve an intent to earn money, Choose, No, it didn't …. And Continue

Re: 1099-Misc for internship stipend

sam2022_ — Wed, 13 Apr 2022 05:33:34 GMT

This makes it subject to the kiddie tax. Is that supposed to happen? Is a stipend considered unearned income, even if I received it after doing work for an internship?

Re: 1099-Misc for internship stipend

JamesG1 — Wed, 13 Apr 2022 12:59:27 GMT

IRS Form 8615 Instructions page 1 states:

Unearned Income

For IRS Form 8615, “unearned income” includes all taxable income other than earned income. Unearned income includes taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, etc. It also includes taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, and income (other than earned income) received as the beneficiary of a trust.

Re: 1099-Misc for internship stipend

snjrrrr — Thu, 08 Feb 2024 02:11:41 GMT

I have the same question but with the following differences:

- I am a phd/ graduate student, not an a undergraduate student like the original commenter.

- I received a stipend to do research at another university in a different state over the summer as part of a grant funded exchange program. However, I was an intern, not a student or W2 employee of the out of state university. The university received grant money to pay me, but I didn't receive it directly. They sent me a 1099-MISC form for the stipend.

question: Should I still select that the internship was not an attempt to earn income and that it is not similar to my other work?

Re: 1099-Misc for internship stipend

KrisD15 — Thu, 08 Feb 2024 02:50:48 GMT

Yes, you should still select that response since you are not really doing "work" or a side job, and you should not need to pay self-employment tax on a stipend or grant.

One of the reasons the IRS resurrected Form 1099-NEC is to distinguish Self-Employment income (1099-NEC Non-Employee Compensation) which IS subject to Self-Employment (FICA) tax from everything else reported on Form 1099-MISC.

The IRS does not address this directly however;

Pub 970

“ certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation “…..

“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 as discussed later under Reporting Scholarships and Fellowship Grants.”…

“ Include any taxable amount not reported to you in box 1 of Form W-2 on Schedule 1 (Form 1040), line 8r.”

Schedule 1 line 8r is "Other Income" and not treated as Self-Employment.

To get the income from the 1099-MISC to this line on your tax return, answer no to being like your work.

Re: 1099-Misc for internship stipend

snjrrrr — Thu, 08 Feb 2024 02:55:49 GMT

Thank you so much for this info!

Follow- up question: I live in a state without income tax, but since this stipend was for a 3 month internship in another state (HI), do I need to report it on a HI state tax return? If yes, as what kind of income in that context? thank you.

Re: 1099-Misc for internship stipend

PatriciaV — Thu, 08 Feb 2024 15:48:17 GMT

Yes, you will need to report this income on a Hawaii State income tax return. Hawaii taxes all income earned within the State of Hawaii. Indicate that you had income in another state and TurboTax will help you complete the state tax return.

Did you live in Hawaii for more than 200 days during the internship? If so, you are considered a part-year resident of Hawaii. Otherwise, you are a non-resident. Either way, you will need to file Hawaii Form N-15 for nonresident individuals or individuals who are Hawaii residents for only part of the tax year.

Re: 1099-Misc for internship stipend

dsw1234tax — Tue, 09 Apr 2024 22:10:30 GMT

Similar situation with 1099-MISC stipend income for an internship. A portion of the stipend was to cover travel expenses. Does that impact the taxes due in any way?

Re: 1099-Misc for internship stipend

MonikaK1 — Tue, 09 Apr 2024 22:26:45 GMT

No, the funds are still taxable, similar to scholarship income that covers unqualified expenses such as travel, room, and board as distinguished from nontaxable scholarships that cover tuition.

If travel expenses are reimbursed following an accountable plan, such as many employers set up, then the reimbursement would not be taxable.

See IRS Topic 421 for more information.

Re: 1099-Misc for internship stipend

DAD66 — Sun, 22 Feb 2026 14:10:31 GMT

I know this is really old but any chance you got an answer? What did you wind up doing? making this income "unearned" not only subjects you to the kiddie tax but lowers the standard deduction and make filing mandatory even if total income is under the threshold.

Re: 1099-Misc for internship stipend

AmyC — Mon, 23 Feb 2026 17:44:12 GMT

To make the 1099-MISC income earned income there are two ways.

Option 1: enter it in the education section as a scholarship and claim it was used for room and board. Follow these steps:

Open to Federal Deductions & Credits.
Scroll to Education
Start/Revisit next to Expenses and Scholarships (Form 1098-T).
Answer No to "Did you receive a 1098-T?" (unless you have one for tuition).
When asked if you "qualified for an exception," answer Yes.
Continue through the interview until you reach the screen: Did you receive a scholarship or grant in 2025?
Enter the amount in the box for Other Scholarships/Grants/Fellowships.
When asked if any was used for "Room and Board," answer Yes and enter the full amount.

Option 2: enter it as 1099-MISC income under Other Income. Follow these steps:

Open to federal income
Locate Other income
Select 1099-MISC
Enter your information
You have to mark:

no intent to earn money
mark that the income is only for this tax year. Otherwise the program will think it is recurring income and a business.
mark no to like main job

Re: 1099-Misc for internship stipend

Jakeado — Mon, 23 Feb 2026 17:50:55 GMT

Thanks but there is a 1098 for actual (unrelated) scholarships and this wasn't work that occurred at a university so doesn't truly fir the definition of a scholarship. Secondly, the second way puts it in as unearned income, which then triggers the "kiddie tax" and lowers the standard deduction (for dependents) that also makes more tax due than there should be (income doesn't even fit the threshold for filing).

After extensive research and calling Turbo Tax, it was decided the best way to do it is to put it under less common income, Misc Income and then unreported earned income which then goes to line 1h on the 1040;. income is still taxable, but as earned income.

Do you disagree?

Re: 1099-Misc for internship stipend

user17752470042 — Sat, 04 Apr 2026 02:07:44 GMT

I have the same issue of making the internship stipend as earned income. How to do it? There’s no option to choose as earned or unearned income.

thank you!

Re: 1099-Misc for internship stipend

DianeW777 — Sat, 04 Apr 2026 15:29:43 GMT

If you choose the steps below you will see 'Other earned income' on line 1h, Form 1040. Once completed you can preview your Form 1040.

Other Miscellaneous Earned Income:

Sign into your TurboTax Online account
Go to Tax Home (left panel) Wages and Income section
Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other income not already reported on a Form W-2 or Form 1099 > Start or Revisit > Select Other earned income
Continue > Select Add > Enter your Description and Amount > Continue

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

Select Tax Tools
On the drop-down select Tools
On the pop-up menu titled “Tools Center”, select View Tax Summary
On the left sidebar, select Preview my 1040

For TurboTax Desktop, change to 'Forms' and review the forms

@user17752470042