Stipend - How to Report

In order to determine how and where to report stipend income, you must first determine the nature of the stipend income.

The IRS explains that your stipend may be reported on Form W-2 Wage and Tax Statement or Form 1099-MISC Miscellaneous Income. You are responsible for determining whether you were paid as an employee or independent contractor and whether or not the income is subject to self-employment taxes.

If you receive a Form W-2, enter this form into the TaxAct program under the Wages and Salaries Federal Q&A Topics menu.

If you receive a Form 1099-MISC, there are two places the income may be reported: Federal Schedule 1 (Form 1040) as Other Income or Schedule C as Self-Employment income and subject to SE tax. Enter either of these options by clicking on the Form 1099-MISC income topic.

On the other hand, many students receive stipends to help pay tuition and other educational expenses. Generally, this type of stipend would be reported on Form 1098-T Tuition Statement, Box 5 as a scholarship or fellowship. If you receive information regarding your stipend on Form 1098-T, you would enter this information within the Education section of the TaxAct program.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.