Scholarship stipend

Forum|Forum|2 years ago
March 3, 2024
4 replies
48 views

I received $13967 (W2) in summer wages and $26000 (1099-Misc) in a scholarship stipend (for living expenses as we are not allowed to work during the school year if we accept this scholarship program). 1098T says 55282 box 1 "payments received" and $55767 in box 5 (scholarships). According to the 2023 tax charts, making between 39950 and 40000 would be a tax liability of $4577. I paid $1319.31 through my summer job, so my liability should be $3258 but Turbo Tax is saying I owe $5557. And smart check review is asking me questions like Principal Business Code, business name, etc. I am a full time student. This is scholarship income, not a personal business. What am I doing wrong?

SharonD007

Alumni - Intuit

The 1099-MISC that you entered should be reported as "OTHER INCOME" not self-employment income or business income. To fix your issue, first delete the 1099-MISC that you already entered. Follow the steps below to delete it and enter in the correct area:

Launch TurboTax
Select Wages & Income
Scroll down to Self-employment Income and select Review (If it says Start, skip this)
Select the trash can by 1099-MISC that you entered earlier
Confirm that you want to delete and select Done

Next, you will enter your 1099-MISC as Other Common Income:

Scroll down to Other Common Income
Select Start or Revisit 1099-MISC and add 1099-MISC
Enter your 1099-MISC and select Continue
Enter Stipend for the description and Continue
Select None of these apply on the next screen
Select only this tax year for this 1099-MISC and Continue
Select No, it didn’t involve an intent to earn money and Continue.

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cmay2ckAuthor

Level 2

That's exactly how I entered it. Still asks all the business questions upon review.

Hal_Al

Level 15

Delete the 1099-Misc and re-enter. If you entered it EXACTLY as the other reply said, it will not be treated as business income. It will be entered on line 8z of schedule 1, as other income on a 1099-Misc.

There is an alternate way to enter "stipend" income. Do not enter at the 1099-MISC screen. After entering your 1098-T, you will be asked if you had any scholarships in addition to box 5. Answer yes and enter the $26K there. It goes on line 8r of Schedule 1.