Tax Year Prior to 2020: 1099-MISC

[dapemon]

Hello - I am a college teacher and I received two 1099-MISC forms from two different payers in addtion to my W-2 from my employer. One covered a stipend for an art residency in a museum of $4,000; and the other it was paid for a visit as a guest critic to a school to cover expenses of $550 (travel, meals, etc). How should I report these two incomes (?). Thank you very much for your assistance.

[VictorW9]

You have two options:

1) You could use the self-employed version of TurboTax and enter the 1099s as business income on a schedule C. With this you should be able to deduct expenses associated with the 1099 income.

2) Use any of the versions of TurboTax ( Basic, Deluxe or Premier) and enter the amount on the 1099 as other income. However, you may not be able to deduct expenses.

[dapemon]

Thanks VictorW9. Some follow up questions:

I understand the benefit of being able to deduct expenses but, in terms of paying taxes, what are the differences of reporting as self-emplyed income versus other income?

Do I actullay have to pay taxes for the stipend?

And, could I claim as expenses the entire amount of the reported income?

Thanks again

[VictorW9]

@dapemon  "And, could I claim as expenses the entire amount of the reported income?" 

You will only be able to do this on a schedule C. It's perfectly okay to report the income on a schedule C and deduct the whole amount as expenses.

The new Tax Cuts and Jobs act (TCJA) eliminated the unreimbursed business expenses in 2018. So there is no way around getting any kind of deduction for any expenses, except through a schedule C.