How do I categorize income from a state govt stipend (for teaching) for which I received a 1099-NEC via my University?

[SabrinaD2]

The stipend reported on the 1099-NEC is categorized as self-employment income. This means it is considered nonemployee compensation and may be subject to self-employment tax. If the stipend is for services rendered, it should be reported as wage income. The IRS expects some stipends reported on 1099-NEC to be included in the "Wages, salaries, tips" line of your tax return.

TurboTax will help you categorize appropriately by following steps below.

Enter Your 1099-NEC Details in TurboTax:

1. Open TurboTax and navigate to your tax return.
2. Go to the search bar at the top right of the screen.
3. Type "1099-NEC" in the search bar.
4. Click the "Jump to" link that appears in the search results.
5. Answer Yes on the Did you have any self-employment income or expenses? screen.
   • If you land on the Your 2024 self-employed work summary page, select Review next to the work you're adding income for.
6. Answer the questions on the following screens until you arrive at Let's enter the income for your work.

Entering Your 1099-NEC Details:

1. Enter the details from your 1099-NEC form, including the total earnings reported.
2. Categorize your income: TurboTax will guide you through categorizing your stipend income as self-employment income.

[gonzabob]

Thanks.  That helps a lot.  In following those instructions, TurboTax says that I need to mail Form SS-8 to the IRS, but would I only need to do this if the income were wages?  Since its a stipend and not wages do I still need to submit SS-8?

[DianeW777]

Yes, only mail Form SS-8 if you want the income to be considered as wages. If you reported it as self employment there is no reason to mail or complete an SS-8.

@gonzabob