It should end up on 1040 line 21 and is not subject to Self-Employment Tax. In this situation, you do need to ignore the screen that says not to enter a 1099-MISC. Most 1099-MISC are for self-employment income, but yours is not. The main concern is how the income is reported, if you follow these directions, it will be reported properly on line 21.
To enter the 1099-MISC
Click Federal on the left side-bar
Click Wages and Income along the top
Scroll down to "Less Common Income" and click Show more (you may need to click "Show All Income first))
Scroll down to "Miscellaneous Income, 1099-A, 1099-C" Click Start
Scroll down to "Other
reportable income" and click Start
Continue through interview, enter "Americorps 1099-MISC" for a description and the
amount.
The amount will be reported on Line 21 of your 1040, as
required by the IRS.
Since the award is taxed, you may enter any education expenses you paid for the year in the education section and apply for a credit under the "Education expenses 1098-T" screen. Do not report the taxable scholarship again.
