How to account for 1099 MISC from AmeriCorps Education Award

Forum|Forum|7 years ago
June 6, 2019
3 replies
24 views

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

TurboTax Deluxe Online

Best answer by BarbL

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.

K

kirkzw

Level 2

n/a

BarbLAnswer

Level 7

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.

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S

ssteven2

Level 2

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.

H

hvents4

Level 2

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!

S

Slhpete

Level 4

If I earned and was awarded the americorps award of $2000 but it is distributed to my son because I am over 55, to pay toward his student loan, who pays taxes?

J

JamesG1

Level 15

The award is reported by the individual whose Social Security number is on the 1099-Misc form.

Follow the steps below to report this income that is not reported as self-employment income.

Select Federal from the left side menu.
Click on Wages & Income.
Scroll down to Less Common Income. Click Show more.
Click Start / Revisit to the right of Miscellaneous income….
Click Start / Revisit to the right of Other reportable income.
At the screen Other Taxable Income enter the description of the income such as 'AmeriCorps Education Award'.