In certain cases scholarships and grants could be considered income and will need to be reported if the following apply:
You must include in gross income if:
- Amounts used for incidental expenses, such as room and board, travel, and optional equipment.
- Amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant. However, you don't need to include in gross income any amounts you receive for services that are required by the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program.
Tax-Free
If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:
- You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
- The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.
For more information please visit: https://www.irs.gov/taxtopics/tc421.html
You can
enter the 1099-MISC in TurboTax as "Other Common Income," which
is reported on line 21 of the 1040 and will not generate Schedule C or SE tax.
Please use the following steps:
- Click on Federal Taxes >
Wages & Income. [In TT Self-Employed: Personal
> Personal Income > I'll choose what I work on.]
- Scroll down to the Other Common
Income section.
- Click on the Start/Revisit
box next Form 1099-MISC. [See Screenshot #1, below.]
- On the screen Did you get a
1099-MISC? click on the Yes button. [Screenshot #2]
- On the next screen, Let's get
the info from your 1099-MISC, enter the information from the
1099-MISC.
[Screenshot #3]
- On the following screens, answer
the following questions:
- Did it involve work that's like your
main job? No.
- You got it in 2016
-
No, it didn't involve an
intent to earn money
7. Continue through the rest of the interview screens. The income will
appear on line 21 of form 1040 (Other Income).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"