1099-misc

[kywalker]

I completed a Americorps program, I recieved a end of the year award worth 4000, i used this award by applying it to my school  food, books, room and board. how do i describe the reason for the 1099-misc? 

[Vanessa A]

You will not enter this income in the education section.  Instead you will enter it as other income by selecting the following:

1. Federal
2. Income and Expenses
3. Scroll down to Other Common Income and click Show More
4. Start next to 1099 Misc
5. Enter the information from the 1099-Misc
6. In Do any of these uncommon situations apply, select this was prize winnings (No, its not prize winnings but it will put the income on line 8i where it belongs, this is just to tell TurboTax where to route it)
7. Enter 0 in the drop down for FMV of prizes

Any money spent on room, board, and food is not a deductible expense so there is no need to account for it.

How old are you?  Are you claimed as a dependent on someone else's return?  If you are over 23 and are not a dependent on another persons return, then you can enter your 1098-T on your return and claim an education credit. 

(Edited 4//2025 @ 1:09PM PST) @kywalker 

[Hal_Al]

The method  of entering this, as described by @Vanessa A , is one way of doing it. 

It appears that you are a student and the award was granted for educational needs. There are other ways to report this type of income.  It makes a big difference, if you are or can be claimed as a dependent. 

Enter scholarship. Enter stipend

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).

After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational  expenses".  So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1** (this line was added in 2022).

*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.  

**Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $14,600 filing requirement (2024) and the dependent standard deduction calculation (earned income + $450).  It is not earned income for the kiddie tax and other purposes (e.g. EIC).  For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.

Taxable scholarship goes on line 8r of Schedule 1, from which TT treats it as hybrid income.