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Received a 1099-NEC (box 3) for a stipend. Why am I paying self employment taxes on a USRA stipend? Intuit states that recipients of stipends are not self employed.

Did I receive the wrong type of form? Turbotax only gives me the option to report a 1099-NEC in the self employed section.
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3 Replies

Received a 1099-NEC (box 3) for a stipend. Why am I paying self employment taxes on a USRA stipend? Intuit states that recipients of stipends are not self employed.

Meant to say 1099-MISC*, not 1099-NEC

LeonardS
Expert Alumni

Received a 1099-NEC (box 3) for a stipend. Why am I paying self employment taxes on a USRA stipend? Intuit states that recipients of stipends are not self employed.

Generally, you will receive a 1099-MISC for a stipend.  However, you may file your stipend even though you received a Form 1099-NEC.

 

To report your stipend from USRA in TurboTax as income not subject to self-employment tax follow these steps:

  1. Log in to your TurboTax account if it is not open.
  2. Select the Wages & Income tab.
  3. Scroll down to Less common income click Show more.
  4. On the page Let's Work on Any Miscellaneous Income click on Other reportable income.
  5. On the page Any Other Taxable Income?  select yes.
  6. On the page, Other Taxable Income enter USRA Stipend Form 1099-NEC for the description and the amount.
  7. Select continue and answer No on the next page.

 

 

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LeonardS
Expert Alumni

Received a 1099-NEC (box 3) for a stipend. Why am I paying self employment taxes on a USRA stipend? Intuit states that recipients of stipends are not self employed.

The steps provided in the previous post will also allow you to report your stipend reported on Form 1099-MISC. The only change would be the description in line 6.  Enter the description as USRA stipend Form 1099-MISC.  For your convenience, here are the updated steps with the changed description.

 

To report your stipend from USRA in TurboTax as income not subject to self-employment tax follow these steps:

Log in to your TurboTax account if it is not open.
Select the Wages & Income tab.
Scroll down to Less common income click Show more.
On the page Let's Work on Any Miscellaneous Income click on Other reportable income.
On the page Any Other Taxable Income?  select yes.
On the page, Other Taxable Income enter USRA Stipend Form 1099-MISC for the description and the amount.
Select continue and answer No on the next page.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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