1009 MISC income

[timbothwell]

1009-MISC income from University - My daughter received stipend from University she attends for internship participation and being editor for school publication for which she received 1099-MISC for $2,040.00. Turbotax wants to treat this as self-employment and require self-employment tax. Is this how this income should be treated?

[MiriamF · Accepted solution]

The way the income should be treated depends upon the box in which it is listed on your daughter's 1099-MISC.

Amounts listed in box 7 are considered to be self-employment income and must be reported on Schedule C. The good news is that any expenses she had in generating this income, such as the purchase of notebooks as editor of the school publication or uniforms she had to buy for the internship, are deductible from her income. The bad news is that the net income is subject to self-employment tax.

Amounts listed in any other box may or may not be subject to self-employment tax, but only Box 7 amounts require Schedule C.

[timbothwell]

Income was only listed in box 2, (other income). How would I handle that in her return?

[MiriamF]

If you have already entered this 1099-MISC, delete it. Then - Type "1099-misc" in the Search box, then select Jump to 1099-MISC. You will then be able to enter her income. But TurboTax lists "Other Income" in Box 3, so that is where you should put it.

[timbothwell]

Thank you much.