My daughter was awarded a grant from the music department of her college for accepting a secondary school music teaching job. She received a MISC 1099 from her college designated as other income. Must she pay taxes on this, and how should she report on h

[jrh1942]

My daughter was awarded a grant from her college for taking a job as a secondary school music teacher. She completed a music education degree. The college listed the amount as other income on a MISC1099 form.  She will have to report that as income on her tax return.  Will she have to pay income tax on it and how should she enter this in Turbo Tax?

[AmyC]

Yes, the income must be reported. It will be included in income for determining tax liability. The standard deductions for 2023

Single is $13,850 so any income above that would be taxable but she may have credits to go against the tax liability.

 Enter your form like this:

1. Open or continue your return.
2. Select Search, enter 1099-misc and select Jump to 1099-misc.
   • Or go to Wages & Income and select Start next to Form 1099-MISC under Other Common Income.
3. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, on the 1099-MISC Summary screen select Add Another 1099-MISC.
4. Enter the info from your form into the corresponding boxes.
   • If you need to enter boxes 4–6 or 8–17, select My form has other info in boxes 1–18 to expand the form.

Since the 1099-MISC is not a business, you have to mark:

•  no intent to earn money 
• mark that the income is only for this tax year, 2023 . Otherwise the program will think it is recurring income and a business.