Scholarship/Stipend

[jonsn]

My child receives a full education scholarship that pays for tuition and books.  They also receive a stipend for living expenses while attending school.  How is the stipend taxed?  I have seen  both to claim as self employment income and to add in to other income that did not receive a 1099.  We did receive a 1099 Misc for this income but it is not self employment and if I go that route, information is asked about the business and a code is needed.  I do not have this information as this is not a business or actually income from work.  Please help.  My child did have earned income of about $10,000 for the year in addition to this stipend.

[KrisD15]

Enter the 1099-MISC following these steps:

Enter the 1099-MISC Under

• Wages & Income
  Other Common Income
  Income from Form 1099-MISC    START
• Enter the 1099-MISC as it was reported, Type "Stipend" in for the description, 
• Select "None of these apply" for uncommon situations, 
• "NO" not like main job, 
• only got it in 2024,  
• "NO" no intent to earn money, DONE
  These are TurboTax questions, not IRS questions. These need to be the answers to let TurboTax know it is not Self-Employment.
   

This will be reported on Schedule 1 line 12

This will not be reported as a scholarship since it was reported on Form 1099-MISC

This will be taxed as miscellaneous income, not subject to Self-Employment tax.