How do I report a stipend I received for an internship last summer? I received a 1099-NEC.

[CJonikes]

Whenever I put the information in the 1099-NEC section it tries to count me as a self employee or a contractor, but up to my understanding, An internship is a non-continuous form of income.

[Opus 17]

It can still be considered self-employment even if it is a short-term service.  The important question is whether this was connected to a college degree program, and was it arranged by the school and is a mandatory degree requirement.  In that case, it is probably treatable as a fellowship for education, meaning it is taxable "miscellaneous" or other income, but not subject to self-employment tax.  

If not a mandatory part of your education, then it still might not be considered self-employment.  I can't find the specific document, but I recall something to the effect that, if this was a training position, and having you there was actually more of a burden to the company than a benefit, it can be considered other income instead of business income.

Lastly, if it was never your intent to earn a profit, and this work is not expected to lead to a regular job and was something you did for your education, you can call this hobby or other income, but this is the weakest of the 3 arguments.  Because the income was reported on a 1099-NEC, the IRS will assume it was self-employment, and if you report it as "other" income, you will get an automatic letter asking you to pay self-employment tax or provide more details about why this is not self-employment.

To report as a business (self-employment, independent contractor) you enter as a 1099-NEC, fill out a schedule C for self-employment.  You may be able to deduct business related expenses.  You pay self-employment tax on the net profit, and you may pay income tax depending on your other income and deductions.  To report as miscellaneous income, enter the 1099-NEC but answer all the test questions as no (not for profit, not like my regular job, will not do again, etc.).  But be mindful that if you don't report this as self-employment, the IRS will probably ask you about it.

[CJonikes]

Thank you for your reply!

To provide more information about the question above, This is what I got. The internship was not required for my degree competition, and it was not done in school either. 

If I put the information into the 1099-NEC section and I did not get prompted the test questions I must answers as no. how could I go by doing that?

[CJonikes]

I'm still unable to see the questions that I must answer as no. 

Is there an specific way to access them to complete them the way you recommended?

[DawnC]

You get the questions Opus17 referred to when you enter a 1099-misc.   When you enter a 1099-nec, there is a screen that you can mark that the income is not self-employment.   Delete the 1099 you previously entered (and the Schedule C if necessary) and then re-enter it.   The follow-up screen to mark the box look like the screenshot below.   As mentioned above, the IRS considers this self-employment; you may receive an inquiry for not filing the self-employment Schedule C.