topic 1099-NEC Grant question in After you file

1099-NEC Grant question

dreamingtreeslk — Wed, 05 Feb 2025 18:21:29 GMT

I received a federal grant from my school to help with cost of living expenses while doing an internship. I am not sure how to properly file the 1099-NEC with my taxes.

Re: 1099-NEC Grant question

RobertB4444 — Wed, 05 Feb 2025 22:41:22 GMT

Your going to go to the deductions and credits section of your federal return. You will scroll down to educational expenses and click start next to the 1098-T section.

If you received a 1098-T from the school you are attending that makes this part easier - just enter that information. If you didn't then you're going to have to tell the system that you did not receive a 1098-T but you did have educational expenses.

Having told the system that it will walk you through several questions about the university that you attended and what your current educational level is and all of those things.

After it asks if you paid for books and materials to attend school it will ask if you received a scholarship or grant. You will say yes and enter the amount from your 1099-NEC. Then it will ask what you spent the money on. Since you used it for room and board you will tell the system that and it will make the amount that you received taxable since room and board is not a deductible education expense.

@dreamingtreeslk

Re: 1099-NEC Grant question

dreamingtreeslk — Wed, 05 Feb 2025 23:26:15 GMT

thank you for the reply! it was not for room and board, so i will have to have taxes taken from it, I think?

Re: 1099-NEC Grant question

MindyB — Wed, 05 Feb 2025 23:44:37 GMT

Yes, if it was for general living expenses, it'll be taxed. ‌Keep in mind, although your grant may have been higher than your tuition, if you paid for school supplies, books, even a computer those items qualify as supplies and properly reporting those expenses will reduce your tax liability.

Re: 1099-NEC Grant question

dreamingtreeslk — Thu, 06 Feb 2025 00:24:44 GMT

So I had to end up putting my info in the 1099-NEC portion for it to be taxed "nonemployee compensation". Which I hope was the right way to do it?

Re: 1099-NEC Grant question

BrittanyS — Fri, 07 Feb 2025 14:24:49 GMT

Yes you enter the 1099-NEC appropriately. The IRS considers any income that is reported on a 1099-NEC as taxable income. A 1099-NEC is used when income other than employment income is given in the amount over $600. To enter in TurboTax, follow these steps:

Sign In to TurboTax
Choose Wages & Income
Select Other Common Income
Select 1099-NEC
Answer Interview Questions

For more information on 1099-NEC, see the link below:

What is a 1099-NEC used for?

@dreamingtreeslk