What option do you choose for filing a 1099-NEC for a grant towards an education loan?

carguysami — Sun, 08 Feb 2026 16:10:21 GMT

Re: What option do you choose for filing a 1099-NEC for a grant towards an education loan?

MaryK4 — Sun, 08 Feb 2026 16:48:54 GMT

You can enter the 109--NEC or file it as Miscellaneous Income. TurboTax will report it the same, but you may not be forced to upgrade if you use the Miscellaneous Income option.

If you want to enter the 1099-NEC, follow these steps:

Did you get a 1099-NEC? Yes
Uploading your 1099-NEC makes taxes easier TYPE IT IN MYSELF
What type of income is on your 109–NEC? HOBBY
OK, lets’ get some details from your 109–NEC

You can also enter as Miscellaneous income:

Under Less Common Income select Miscellaneous Income, 1099-A, 1099-C
On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income
On the Any Other Taxable Income? screen, select Yes
On the Other Taxable Income screen enter the description and amount. (I would enter 1099-NEC with Name of Payer for clarity). Select Continue
On the Other Miscellaneous Income Summary screen, select Done

Grants awarded for payment toward your student loans must be reported as income on your federal tax return. (See FAQ)

Re: What option do you choose for filing a 1099-NEC for a grant towards an education loan?

Hal_Al — Sun, 08 Feb 2026 19:44:57 GMT

Apparently last year's way of handling a 1099-NEC, as sporadic income, is no longer available.

Since this is essentially additional compensation, paying social security and Medicare tax appears appropriate. "Self Employment Tax (SET) is how the self employed pay their social security and Medicare tax.

topic What option do you choose for filing a 1099-NEC for a grant towards an education loan? in Education

What option do you choose for filing a 1099-NEC for a grant towards an education loan?

Re: What option do you choose for filing a 1099-NEC for a grant towards an education loan?

Re: What option do you choose for filing a 1099-NEC for a grant towards an education loan?