1099-NEC Stipend

[DolphJack31]

I was in a research seminar class where I received a stipend. It was not a paid internship. Therefore, I received a 1099-NEC, but did not receive a W-2.

When prompted, should I list myself as "business--self-employed", even though I was not actually self-employed?

[CesarJ]

If you do not operate a research services business, this income is not classified as self-employment income. The correct place to report it is under Other Income, and the steps for doing so are listed below. 

1. Navigate to Federal Taxes.
2. Go to Wages & Income.
3. Select I'll choose what I work on.
4. Scroll to the bottom and, under the Less Common Income section, select Start or Update for Miscellaneous Income....
5. Browse the available income categories. If none of them apply, select Other reportable income, where you can input your own descriptions and amounts.

Should you need to report this as self-employment income, an article is provided here to guide you through reporting the related income and expenses.

[Edited 02/01/2026 7:39 PM PST]

@DolphJack31 

[DolphJack31]

Thanks for the information! However, in an earlier version of this post, you mentioned that "Because the income was reported on a 1099 NEC,  the IRS treats that income as nonemployee compensation, even if you don't consider yourself self-employed. In TurboTax, you should enter the 1099-NEC as self-employment income so it is reported correctly." 

But given I am not operating a research services business, I should ignore your earlier post, and put it under "other income?"

[DianeW777]

It's possible the payer does not understand the correct reporting form. The stipend is not required to be reported as self employment income. Keep the 1099-NEC in the tax file and delete that form from your return (see the link below).

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax Desktop software and need to delete a form, click here.

Reporting: Taxable, non-W-2 stipends are usually reported on Form 1040, Schedule 1, Line 8r as "Scholarships and grants not reported on Form W-2".

• To enter  scholarships, grants, stipends (With or without a 1099 or a 1098-T):
  1. Click on the Deductions & Credits 
  2. Scroll down to Education (if Education is not there, click on Check for more tax breaks).
  3. Select Expenses and Scholarships (Form 1098-T).
  4. On the Do you want to enter your higher education expenses? screen, select Yes.
  5. Continue with the onscreen interview until you get to the Add any other financial aid screen.
  6. Enter the amount of the stipend in the box Other scholarships, grants, or fellowships
  7. This will be show on Schedule 1, line 8r, then carried with any other entries to the 1040.

Be prepared to support your reasoning should the IRS question it later as indicated by @CesarJ. Keep all supporting data with your tax return.

@DolphJack31 

[kindlib]

Thanks for this guidance.  When you say,

> Keep the 1099-NEC in the tax file and delete that form from your return (see the link below).

do you mean, enter the 1099-NEC information into the associated form in TurboTax, but then delete that form before filing?  Or are you simply saying to keep the 1099-NEC paper form for your records and follow the steps you outlined?

[DawnC]

She means keep the 1099-NEC with your tax records in the unlikely event the IRS asks about it later.   Just take the steps above but don't enter the 1099-NEC, just keep it with your 2025 tax documents.   @kindlib