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New Member
posted Jan 28, 2024 6:33:17 PM

I need help. I received a 1099-Misc for $2000. It is a stipend for working with the homeless population. Turbo tax says it unemployment, is that right?

Do I have to claim a 1099-Misc for a $2000 stipend?

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1 Best answer
Expert Alumni
Jan 29, 2024 6:03:10 AM

Yes, you must report the income. No, it is not unemployment.  If you not engage in an ongoing business concern, as opposed to an occasional activity then this is reported as other income.  You do not need to enter the 1099-MISC, you can use the steps below. Be sure to delete any entry you might have in the 1099-MISC screen.

 

To report this income you can use the following steps.

Go to the Wages and Income  section of TurboTax

  1. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
  2. Select Other reportable Income > Enter a description (Stipend) and the amount

Stipends are not considered as wages so employers will not withhold income tax on any stipends made to employees. However, stipends are often considered income so you as an individual will have to calculate and pay taxes on any stipends received.

 

1 Replies
Expert Alumni
Jan 29, 2024 6:03:10 AM

Yes, you must report the income. No, it is not unemployment.  If you not engage in an ongoing business concern, as opposed to an occasional activity then this is reported as other income.  You do not need to enter the 1099-MISC, you can use the steps below. Be sure to delete any entry you might have in the 1099-MISC screen.

 

To report this income you can use the following steps.

Go to the Wages and Income  section of TurboTax

  1. Scroll to  Less Common Income > Select  Miscellaneous Income, 1099-A, 1099-C
  2. Select Other reportable Income > Enter a description (Stipend) and the amount

Stipends are not considered as wages so employers will not withhold income tax on any stipends made to employees. However, stipends are often considered income so you as an individual will have to calculate and pay taxes on any stipends received.