1099-NEC but not self employed (Internshp)

[nixxy311]

My daughter had a summer internship and they sent a 1099-NEC.  The internship was at a college and she did make over $400 but I'm not sure how to even enter this because it's asking questions that are not relevant to what she did.  She has income from another job as well but her income from that is well below the amount she would need to file as a student.

Should this be a different form?

Thanks!

[Bsch4477 · Accepted solution]

After you enter the information from the 1099-NEC, you will come to a screen that asks "Does one of these uncommon situations apply?" Select "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby." The income will be reported as other income on Schedule 1 line 8z.

[Opus 17]

If the internship is required by the school for her degree, or was at least organized by the school and she is getting degree credit for it, then it is "education" and not "work" (even though it probably felt like "work").  In that case it is taxable as other income (similar to a scholarship) and is not from self-employment.  That means the income is taxable, but not subject to self-employment tax.  She also can't deduct expenses.  And she should not have a schedule C for this income.  

There is a difference between internships that are simply lower paying entry-level jobs, and internships that are considered part of the student's education.  We can talk about that further if you are interested.