Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Mar 4, 2024 2:09:47 PM

1099-NEC from Grant

I received a 1099-NEC due to the grants I received while working in child care. I put in my information from the 1099-NEC but it is asking me to add a business. 

0 4 2637
4 Replies
Expert Alumni
Mar 4, 2024 2:24:23 PM

A Form 1099-NEC is for Non-Employee Compensation.  You will have to report the amount on Schedule C - Profit or Loss From Business.  If you have any expenses related to your activities that you received the 1099-NEC for, you can deduct those on Schedule C.   For more information see the following TurboTax Help Article:  How to File Taxes with IRS Form 1099-NEC

Level 15
Mar 4, 2024 3:42:02 PM

Although it may be news to you that you “have a business” (and most of the other people who get their first 1099-NEC); The IRS considers anything on a form 1099-NEC to be self employment income. Enter the 1099 income, at 1099-MISC and Other Common income / income from a 1099-NEC . TurboTax (TT) will complete Schedule C  for you and allow you to deduct any expenses associated with this income. You'll also have to pay self employment tax (social security & Medicare) on any profits greater than $432. 

 

There are circumstances where such income can be treated as "other income" and not be subject to self employment tax.  It depends on what "received grants while working in child care" means.  Who paid the grants and why did you receive them. 

New Member
Apr 13, 2024 12:47:25 AM

I received a stipend/grant  from a university for going through a state program to get my Certified peer recovery specialist License. How do I file that with my 1099 - NEC it wasn’t for business.

Level 15
Apr 13, 2024 4:13:50 AM

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 (R&B), 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 is new for 2022-3).