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My daughter received a 1099-NEC from my employer as part of a scholarship. That isn't an option for type of income so i'm not sure what to select.

 
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DMarkM1
Expert Alumni

My daughter received a 1099-NEC from my employer as part of a scholarship. That isn't an option for type of income so i'm not sure what to select.

On your daughter's tax return in the "Wages & Income" section, you will use the "Less Common Income" dropdown to find "Other Reportable income".  For the description enter Grant 1099-NEC.  This puts the income on line 8 from the Schedule 1 as directed by the IRS. (See below references).  

 

According to the IRS here, "Grants include: Scholarships, fellowships, internships, prizes, and awards".  

 

Also, IRS topic 421, states:  "Generally, you report any portion of a scholarship, a fellowship grant, or other grant that you must include in gross income as follows:

  • If filing Form 1040 include the taxable portion in the total amount reported on Line 1a of your tax return. If the taxable amount wasn't reported on Form W-2, enter it on Line 8 (attach Schedule 1 (Form 1040)."
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