My W-2 job contracted with a scholarship org to award money to employees towards student debt reduction. This org sent me a 1099-MISC. Last year TT counted this as separate income, but this year it states that it is including it on my schedule C (I also am partially self-employed). Will this affect my self-employment tax burden? Is there any way to change it back to being a separate line item under Income? Is either way less for my tax burden?
To enter a Form 1099-MISC that is not for self-employment -
Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to Other Common Income
On Form 1099-MISC, click the start or update button (TTO)
Or enter 1099-misc in the Search box located in the upper right of the program screen. Click on Jump to 1099-misc
On the screen Did you get a 1099-MISC?, click on Yes
On the screen Let's get the info from your 1099-MISC, enter the amount received in box 3 and continue
On the screen Describe the reason for this 1099-MISC, enter a reason and Continue
On the screen Does one of these uncommon situations apply? - Select None of these apply and continue
On the screen Did the (reason) involve work that's like (your name) main job - Select No and continue
On the screen How often did (your name) get income for (reason) - Select 2024 and continue
On the screen Did the (reason) involve an intent to earn money? - Select No and continue
The amount entered from the Form 1099-MISC will be entered on Schedule 1 Line 8z
The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8
Thanks, DoninGA
I must have entered it incorrectly the first time, and now any way to un-do this?
This was a scholarship I also received last year so it showed up under my federal income from 2023. So I clicked on review for 2024 and answered the questions and TT diverted the funds to schedule C. And now that 1099-MISC line item (for 2023 and 2024) has disappeared from my federal income sources. How can I un-do what I just did? Thank you for your help!
You need to Edit your self-employment income and expenses in the Wages & Income section of the program.
Then on the screen Your 2024 self-employed work summary click on Edit
On the following screen for Income click on the trash can symbol for the 1099-MISC that is from your employer.