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Level 1
posted Mar 20, 2021 1:56:42 PM

1099-Misc for Employment Stipend

I am a physician and signed an employment contract while still in training. My future employer paid me a monthly stipend while in training and sent a 1099-Misc with the amount listed in Box 1 "Rents". The rest of the form is blank and did not have any tax withheld. I am sure this should qualify as taxable income but when I fill out the form on TurboTax it asks me questions about where the "rent" income was obtained from. I am unsure how to proceed or if I should have instead received a 1099-NEC or W-2 from this employer and should contact them. I appreciate any help in advance!

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1 Best answer
Level 1
Mar 20, 2021 2:39:26 PM

Yes, it is taxable income for you. Your employer could issue you a Form 1099-MISC, and put the income amount in the box 3, Other income, or Form 1099-NEC, non-employee compensation. However, he couldn't classify that income as rent, that was a mistake. 

You can report it as Other Income. Follow these steps to enter it in TurboTax:

Federal Taxes -> Wages & Income -> I'll choose what I work on -> Scroll to the bottom and under Less Common Income select Start (or Update) for Miscellaneous Income. You can enter your 1099-MISC information there. 

3 Replies
Level 1
Mar 20, 2021 2:39:26 PM

Yes, it is taxable income for you. Your employer could issue you a Form 1099-MISC, and put the income amount in the box 3, Other income, or Form 1099-NEC, non-employee compensation. However, he couldn't classify that income as rent, that was a mistake. 

You can report it as Other Income. Follow these steps to enter it in TurboTax:

Federal Taxes -> Wages & Income -> I'll choose what I work on -> Scroll to the bottom and under Less Common Income select Start (or Update) for Miscellaneous Income. You can enter your 1099-MISC information there. 

Level 2
Mar 20, 2021 2:47:55 PM

You should contact your employer and ask them to issue a 1099-NEC for the employment.  (NEC stands for Non Employee Compensation).  The 1099-MISC is no longer used for reporting of Employment income.

Level 1
Mar 20, 2021 2:48:45 PM

Thank you, I will contact them and order it as other. Appreciate your time.