Apprentice Program Stipend

Forum|Forum|7 years ago
June 1, 2019
1 reply
7 views

My husband receives a stipend every quarter to attend a carpenter's apprentice class for a week (carpentry is his main career as well). He received a 1099-misc for this stipend with box 3 filled. How should I enter this, as it's not self-employment income?

TurboTax Deluxe Online

Best answer by

Since your husband is neither selling goods nor providing services in exchange for this stipend, it is my professional opinion that it is not self-employment income, notwithstanding that it is directly related to his main line of work.

I believe the income should be reported as Other Income on Schedule 1 (Form 1040), line 21. It will be subject to income tax, but not FICA self-employment tax.

Reporting 1099-MISC that is not self-employment income

Under the Wages & Income tab (or Personal Income tab in TurboTax Home & Business) scroll down to Other Common Income.

Select the start/update button next to Income from Form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, apprenticeship stipend, etc. Click Continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work…, and click Continue.

Select ONLY the tax year for which this specific Form 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Click Continue.

Select "No, it didn’t involve an intent to earn money," then click Continue.

Select No, then click Continue.

Click the DONE button, and that does it.

Anonymous

Answer

I believe the income should be reported as Other Income on Schedule 1 (Form 1040), line 21. It will be subject to income tax, but not FICA self-employment tax.

Reporting 1099-MISC that is not self-employment income

Under the Wages & Income tab (or Personal Income tab in TurboTax Home & Business) scroll down to Other Common Income.

Select the start/update button next to Income from Form 1099-MISC. Then click YES to indicate you have a 1099-MISC.

Enter the 1099-MISC exactly as printed, and then Continue.

Enter the reason you got this money – be it scholarship, bonus, apprenticeship stipend, etc. Click Continue.

Select None of these apply, then Continue.

Select No, it didn’t involve work…, and click Continue.

Select ONLY the tax year for which this specific Form 1099-MISC was issued. Do not select the year that you received the 1099. Select the year for which the 1099-MISC was issued. Click Continue.

Select "No, it didn’t involve an intent to earn money," then click Continue.

Select No, then click Continue.

Click the DONE button, and that does it.