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my daughter received a scholarship and she was sent a 1099 nec.

Do I just enter it in the program? Is this correct?

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1 Reply
PatriciaV
Expert Alumni

my daughter received a scholarship and she was sent a 1099 nec.

It depends. Are you working on your return or for your daughter? Is this truly a scholarship or was this self-employment income?

 

The IRS Instructions for Form 1099-NEC say:

"Do not use Form 1099-NEC to report scholarship or fellowship grants. Scholarship or fellowship grants that are taxable to the recipient because they are paid for teaching, research, or other services as a condition for receiving the grant are considered wages and must be reported on Form W-2."

 

You might need to ask the school why this income was reported on Form 1099-NEC. If the school has no good explanation and the income is not from self-employment, report under the "Other Reportable Income" topic in TurboTax. 

 

In any case, you do not report her income on your return. If it has to be reported, at all, it goes on her own return. 

 

See this TurboTax article on when a dependent needs to file a separate tax return: 

How do I decide when to file on my own, not with my parents?

 

In TurboTax, she would indicate that somebody else can claim her as a dependent, at the personal information section.

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