Should I give a 1099 Misc to a scholarship recipient?

[lgalaske]

We are a church with a PreK - 12th school. Each year, we give out several scholarship awards to departing seniors. Two of them are $1,000. Do we need to give these students a 1099 for this?

[Opus 17]

Yes.  As a business making payments to an individual, you need to issue the 1099-MISC.  Depending on how the student used the money, it may not be taxable, but you need to report it.  (You do not need to report it if you paid it directly to the child's account at their college.)

[lgalaske]

Thank you!

[kellygerman]

This info is incorrect.

Do not use Form 1099-MISC to report
scholarship or fellowship grants. Scholarship or fellowship
grants that are taxable to the recipient because they are paid
for teaching, research, or other services as a condition for
receiving the grant are considered wages and must be
reported on Form W-2. Other taxable scholarship or
fellowship payments (to a degree or nondegree candidate)
do not have to be reported to the IRS on any form, unless
section 6050S requires reporting of such amounts by an
educational institution on Form 1098-T, Tuition Statement.
See section 117(b)–(d)

[JUMYFOUNDATION]

So I do not have to do anything. Even I have to add  the amount into annual distribution 

[lcwlindsey]

If my church organization hands money to the student directly as a check for the scholarship program, without verifying the student is going to college, do we still have to file a 1099-misc? If we paid the college directly, would we have to report the scholarship, or is it just when we give the funds to the student we have to file the 1099-misc? 

[TomD8]

@lcwlindsey --

From page 3 of the instructions for Form 1099-MISC:

"Do not use Form 1099-MISC to report scholarship or fellowship grants."

Instructions for Forms 1099-MISC and 1099-NEC (Rev. January 2022) (irs.gov)

[lcwlindsey]

Thanks! 

[HMac167]

The answer is no.

The information below is copied form the IRS website under instructions for 1099 MISC.

"Scholarships.

Do not use Form 1099-MISC to report scholarship or fellowship grants. Scholarship or fellowship grants that are taxable to the recipient because they are paid for teaching, research, or other services as a condition for receiving the grant are considered wages and must be reported on Form W-2. Other taxable scholarship or fellowship payments (to a degree or nondegree candidate) do not have to be reported to the IRS on any form, unless section 6050S requires reporting of such amounts by an educational institution on Form 1098-T. See section 117(b)–(d) and Regulations section 1.6041-3(n) for more information."