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1099-Misc Americorps award?

How would I classify my $1000 award from my 1099-Misc?  I received it from Americorps as payment (made directly to my school) for work I did with JumpStart.  

This is the question I'm stuck on!


How would you describe the reason you got this Form 1099-MISC?

I am self-employed; this is income for my business.

This is income for my farm.

This is money from occasional freelance, consulting or work I did as an independent contractor.

This is money from a side job I did. Explain This

This was commissions, bonuses, prizes, awards, etc. and This Payer was not my employer.

None of the above - show me more options.

Any help is much appreciated!

-Gina
  • I have exactly the same question.  I want to know if a 1099-MISC for a stipend I received for Americorps volunteer work is considered "Earned Income" or an award.  If it is "Earned Income" and it is not an "Award" then I can apply for the Earned Income Credit.
  • Along those same lines, is a merit scholarship considered a prize?
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You do indeed get taxed on it as other income.  Fair market value is the amount shown in Box 3 of the 1099-Misc
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    In Turbo Tax, select the Personal (or Federal Taxes) tab, click on the Wages & Income link, choose "Explore on My Own".

    Then scroll down to Other Common Income / Income from Form 1099-Misc. After you add or edit the 1099-Misc, Turbo Tax will allow you to select "Winnings from prizes, etc". On the next page, you can enter the Fair Market Value of the award.

    I hope this helps!
    • I am hung up on this too.

      After filling out the 1099-MISC turbo asks for the more specifics form where the income came from and the closes is

      "This was commission, bonuses, Prizes, Awards, and Corporation for National $ Community Service was not my employer"

      Well National & community Sercive was my employer.  So I looked up on The Americorp or the National & Community Service website in the FAQ and I got this...

      "7. Is the education award taxable?

      Yes. The education award is taxed in the year it is used. For example, if a member uses all or part of the education award for college in the fall of 2010, that member must pay taxes on the portion of the award used when he or she files 2010 taxes.

      The Corporation for National and Community Service (CNCS) does not withhold taxes from the award. By the end of January each year, the Corporation sends a 1099 Form to all AmeriCorps members who have made payments from their education awards and for whom interest payments have been made during the previous year totaling more than $600.00. The 1099 Form does not need to be submitted to the IRS with a member’s tax return, but it reflects the amount that CNCS reports to the IRS as taxable miscellaneous income."

      I all ready have done there W-2 they sent me last tax season (this 1099-MISC was a year later but the same for every on I served with).

      So...
       
      "...The 1099 Form does not need to be submitted to the IRS with a member’s tax return, but it reflects the amount that CNCS reports to the IRS as taxable miscellaneous income."

      ...does that mean that I should enter the 1099-MISC into torbo tax at all??? That it should be cagatorized as something other type of earnings???
    • I got stuck on exact same thing...
    • I am working on that same problem.  I submitted it last year as well but I can't remember what I did.  After reading these post I think I may have submitted it incorrectly.
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    • Just go to H&R Block site-you can input ed award without classification and hassle.
    • Amerciorps doesn't tax the award, so if you use it all in one year (which is what I did), you get taxed a LOT on it. However, I am wondering when it asks what the Real Market Value is if we can put in the full amount of the award? Does anyone know? If we can enter the Real Market Value than we wouldn't be taxed as much.  We already lived off poverty wages and were doing community service- I can't believe we get taxed on this.
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