I recieved a 1099-NEC for my paid internship that I completed for college credit. How do I file my earnings?

[xxtaxqueen98xx]

Hello All,

For 6-months from June to December, I was a paid intern as a part of a fellowship from my university. This opportunity was awarded to me by my school, and as part of my experience I had to complete a course for college credit. Since I am completing my undergraduate degree, I was enrolled full-time for the fall semester where my paid internship accounted for 8 of my credits. I was paid every two weeks by the company. The company gave me a 1099-NEC. I am not self-employed. How do I file my earnings?

[SharonD007]

You will have to report your income from Form 1099-NEC on Schedule C.  The IRS considers this income as self-employment income, which is why TurboTax is asking you questions about your business. You don't have to name the business, you can use your name. The good thing is that you'll be able to deduct reasonable and customary business expenses from that income.

To report self-employment income, follow the steps below:

1. Open TurboTax
2. Select  Wages and income
3. Select Self-Employment Schedule C:1099-NEC
4. Answer Yes on the next screen - Did you have any self-employment income or expenses?
5. Answer the questions on each screen, when you get to the screen - Let's enter the income for your work, select 1099-NEC and select Continue.
6. You can enter the info from your 1099 form on the following screens.

For additional information, refer to the TurboTax Help articles How to File Taxes with IRS Form 1099-NEC, Reporting Self-Employment Business Income and Deductions, and What self-employed expenses can I deduct?

@xxtaxqueen98xx 

[xxtaxqueen98xx]

Can you please elaborate on #5? Text seems to be missing.

[xxtaxqueen98xx]

Because I completed the internship for school, is there a way to file my earnings as a stipend? The purpose of the internship was not for employment but for education.

[BrittanyS]

If the income is reported on a 1099-NEC that is considered self-employment income.  Stipends are typically reported on a 1099-MISC or a W-2.  Stipends are fixed income provided for educational purposes.  If you feel the income was reported incorrectly and should be considered a stipend, you will need to contact the issuer to have the form corrected.  For more information on stipends and form 1099-NEC, see the links below:

• Are my scholarships, fellowships, or grants taxable?
• 1099-NEC

@xxtaxqueen98xx