Hello thelma.velez:
A solution to your issue can be found by reading the following AnswerXchange post:
https://ttlc.intuit.com/questions/3726385
The general procedures for reporting fellowship and post-graduate stipend income are explained there. In your case it is recommended that you simply consider your 1099-MISC data as though you had instead received a NSF fellowship letter or other document, and then proceed on that basis. In other words, don't try to enter your stipend directly as a 1099-MISC item, as that standardized interview process in the TurboTax program can potentially lead you astray (such as down a pathway to reporting your stipend as self-employment income, which it is not).
Instead, if you follow the processes described at that other answer thread, you should end up with an amount showing on your Form 1040, Line 7 with the abbreviation "SCH." The distinction between Line 7 SCH income and self-employment income, of course, is that self-employment income (i.e., Form 1040, Schedule C income) is subject to additional self-employment taxes, along with ordinary income taxes -- whereas fellowship stipends (income) are only taxable at regular rates, without any additional self-employment taxes added. This is not only correct income tax reporting, but will avoid the situation of you having to pay any more in taxes than is legally required.
Thank you for asking this important question.
