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March 12, 2024
Question

Where does one report service free stipends (taxes not withheld) in Turbo tax? I have read form 1040 – Line 1 and enter “SCH”. How does one do that with Turbo tax?

  • March 12, 2024
  • 1 reply
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I only have a pay check to reference.

1 reply

March 13, 2024

To enter your service free stipend,  select the following

  1. Income
  2. Show More next to Less Common Income
  3. Start next to Misc Income
  4. Start next to Other Reportable Income
  5. Enter the income as Other Taxable Income with a description of Taxable Stipend t

This will enter the income on line z of her Schedule 1 with a description which will then flow to line 8 of the 1040.  It will be taxed as ordinary income instead of self-employed income. 

 

If this was related to education, you would enter it in the education section by selecting the following:

  1. Federal
  2. Deductions and Credits
  3. Expenses and Scholarships under Education
  4. This will be taxable to the extent is exceeds your eligible education expenses
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