How to report Internship Income

[Student23]

My son had a paid internship for two months last year.  We live in AZ, the internship was completed in NM, but the school that paid for the internship is in Tennessee.  He didn't receive any 1099 forms.  he was told that he is responsible for reporting the income to the IRS.

How do I report this income to the IRS?

Does he need to report the state income in NM or TN?

Any guidance is highly appreciated.

[MaryK4]

If he worked in New Mexico, he will have to file a New Mexico return.  If you are a Nonresident, you must file for New Mexico if you have a federal filing requirement and have income from any New Mexico source whatsoever.

See Do I Need to File a Tax Return?  to see if you need to file a federal return.

If he is single, he would only have to file an Arizona return if his income is over $12,950.

[Student23]

Thank you for the response. I know he has to file taxes based on the overall amount earned between the Internship and his prior employment for the year.

What I want to know is  how to report the internship income on the Fed tax return? Is this considered miscellaneous income? He didn't received any 1099 or w-2's because the money was given as stipends. 

Also, would he be able to deduct any living expenses in NM for the two months he was in the internship?

[MaryK4]

You will want to report on a Schedule C as Self-Employment income- this way you can deduct the traveling and lodging as expenses.  You will have to pay Social Security and Medicare tax on any net income.    See Self-Employment Taxes Tax Tips & Videos | TurboTax® Articles.

 @Student23 

[Student23]

thank you!