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How to Report Career Readiness Stipends: 1099 or W-2?
March 20, 2026
Q. We started a career readiness and job training program that pays stipends to community youth who participate in the program. The stipend compensates them for their time participating in career readiness services and supports, as well as career readiness and leadership training. We track the milestones and hours, with timesheets, that trigger payment of the stipends. Would we report these stipends as non-employee compensation on a 1099-NEC or as other income on a 1099-MISC?
A.
(Answered by…
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