I am training to be a clergyperson and did a paid church internship in summer 2023, but I was not yet ordained. Does this count as clergy income, or other income?

Forum|Forum|2 years ago
February 18, 2024
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I received a 1099-NEC for the internship stipend, and I'm hung up on the part where TurboTax is asking me if this falls under Education, Clergy Services, Research, Music Performing, Legal Services, or None Of These.

TurboTax Deluxe Online

DianeW777

This would be considered other income because you were not yet a minister or officially a clergy person. However it would be considered self employment income subject to self employment taxes (social security and medicare taxes), as well as personal income tax.''

How do I report income from self employment?

You should use your address as the business address, and your name as the business name. This is not clergy income as of yet, but a paid internship as you work towards your end goal of clergy person.

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celiadorr

He should have received a w-2 and not a 1099-NEC because he really is not self employed. He does not fit the criteria for an independent contractor according to the IRS rules. I always ask some of these questions to determine whether an employee or an independent contractor. I found this on the IRS website. When you start asking the questions it is clear he is an employee. https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee.
Here are the instructions on how to report this. Remember to use Code H when you get to the page where you put in the employer's name. It will say W2 reported on 1099-NEC. Link to TurboTax Page