Intership

[merritt1983]

Our daughter has an internship that pays a stipend.  Would this be an uncommon situation?  Maybe this is not money earned as an employee or self-employed individual?  

She does have a photography side business, that didn't produce much income this year due to school.  She reports her photography income and expenses. 

[RobertB4444]

If this was reported to her on a 1099-NEC then she needs to enter it as self-employment income just like the photography business.  

If this was reported on a 1099-MISC then you will report it in the 'Less Common Income' section.  In your federal return scroll to the bottom of the wages and income section to 'Less Common Income'.  Click on the last entry 'Miscellaneous Income' and then on the last entry again 'Other Reportable Income'.  Enter a description here (Scholarship stipend or something) and the amount from box 3 of the 1099-MISC.  It is taxable but not subject to self-employment tax.

@merritt1983 

[merritt1983]

Thank you, it is reported on a 1099-NEC.   TurboTax is asking if one of the uncommon situations apply.  I didn't know if the option "This is not money earned as an employee or self-employed individual..." option would apply.

[RobertB4444]

If they're giving her a stipend in exchange for doing a job for them then she is a self-employed person contracted to work for the university.  If they are just giving her the stipend for being a student then you can maybe make the argument that she is not an employee or self-employed individual.  But the IRS is pretty stringent about 1099-NECs.

@merritt1983