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Level 1
posted Mar 23, 2025 8:59:04 PM

I received a 1099-NEC for a living expense stipend - how to report this?

Hello,

In 2024, I received $10.5k from my university for a “living expense stipend” to reimburse the living expenses during an internship I had in 2023 with company C. The terms of receiving this was that I join the company full time post-graduation, which I did. I was given a 1099-NEC from the university but they specified the money was provided by company C.

 

I'm using TurboTax, and I am unsure if I should I select the "sporadic activity or hobby" option? If I select "non of these apply" it has me fill out a Schedule C. What is the right way to go about reporting this living stipend?

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1 Replies
Expert Alumni
Mar 24, 2025 8:27:12 AM

Yes. Check the box for "This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby." 

 

This choice avoids the need for Schedule C and will report the income on Schedule 1 Line 8z Other Income. The total from Schedule 1 Line 10 flows to Form 1040 Line 8 as ordinary income.