How to account for 1099 MISC from AmeriCorps Education Award

[sarah-twomeymerc]

My husband and I both used $500 each of our AmeriCorps Education Award. What is the best way to note this on our taxes?

[kirkzw]

n/a

[BarbL · Accepted solution]

The Segal (Americorps) Award is handled a bit differently than most education benefits.

You probably received a 1099-MISC for the amount you used.  To enter the 1099-MISC, click on Federal Taxes (on the top menu bar) and then Wages and Income.  When the page opens, click "Jump to full list” if it is not displaying the full list of income items. Scroll down to the very last item, Less Common Income and click “Show More” to expand the list.   Select "Miscellaneous Income, 1099-A, 1099-C".  

On the page that opens, again choose the very last item, "Other reportable income".  Reply that you did receive this type of income, then enter "Americorps 1099-MISC" for a description and the amount.  This will put the income on Line 21 of your 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.

Because the award is taxable income, any tuition, fees, books, and supplies paid with the amount is eligible for education credits.  If your Segal Award is reported on both the 1098-T and the 1099-MISC, enter the 1099-MISC as directed above.  When completing your education section, indicate that you did NOT receive a 1098-T and you will be able to enter your expenses without the form.  Do not enter the taxable amount of the Segal Award.

[ssteven2]

You actually don't have to report your segal award and won't get a 1099-MISC unless the amount used was equal to or more than $600. Not sure if the amount is accumulated for couples, though.

[qbutta13]

This answer should be updated to fit the selections available on the TurboTax website. Confusingly, one of the pages says "do not enter 1099-MISC form information here, but the steps above say to do so. Also, in order to add a 1099-MISC form, you can't use the free version of TurboTax.

[kwaeisi-golliday]

That's the exact problem I'm having.

[p-dedios7]

I had the same issue come up. It states that I need to buy the deluxe version to complete it.

[carlymcandrews]

Me too! Is there an alternative way to file, outside of turbo tax?

[kirkzw]

It says "When completing your education section, indicate that you did NOT receive a 1098-T and you will be able to enter your expenses without the form." What if I used the AmeriCorps Ed. Award and other scholarships and grants in the same year?
I have a 1098-T form from school with numbers in Box 1 and Box 5, and a 1099 MISC from AmeriCorps.

[user321564]

Im in the same situation as krikzw!

[jarchie75]

When I looked up how to file the 1099-misc, it brought me to a Turbo Tax alternative- maybe this will allow us to file for free still with including our Segal Payouts. <a rel="nofollow" target="_blank" href="https://www.americorpsalums.org/page/FreeTaxReturns">https://www.americorpsalums.org/page/FreeTaxRet...>

[hvents4]

Hi, can you confirm this with a link to some kind of official tax forms? I want to ensure i am using my award properly and for the most tax benefits.

Thank you!

[4233278]

Hi, this answer is not helpful. TurboTax keeps interpreting this education award as self-employment, despite following these steps. 

[JamesG1]

This help specifically states:

“You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.”

[kams]

When I go to plug in my 1099-MISC it specifically says:

Enter a brief description and amount for any item of other miscellaneous taxable income you received in 2019.

Do not enter income reported on Form 1099-MISC

Description *box*

Name *box*

Name *box*

It is contradicting itself! What do I do?!?!?! My 1099-MISC is from Americorps.

@BarbL