1099-NEC received for Travel Grant

[lagh]

I applied for and was awarded a travel grant for $1000 from research society to attend their conference last year as a doctoral graduate student. This year, I received a 1099-NEC for it to file taxes. I was not providing a service or working for them in any way as a non-employee. How should I file this?

1. As a 1099-NEC but put it on Schedule 1 Other Income because it wasn’t compensation as a non-employee?

OR

2. As a 1099-NEC under self-employment and deduct the travel expenses that I paid? Net would be zero because the hotel alone was almost $900, not including mileage to get there and per diem for meals (I was there for 4 days)? But I’m not a self-employed individual, so would this cause red flags?

I have been in touch with the society who issued the 1099-NEC trying to get them to switch it to 1099-MISC since it was an award that I applied for, but we have 6 days left for them to do that, so I don’t think it’s happening (seeing that they haven’t figured it out in the last month since I’ve been in contact with them). If they do reissue it as a 1099-MISC, does that mean I can only put it on schedule 1 other income? Or can travel expenses be deducted from it as well?

[Vanessa A]

If you were not an employee of the research society, then it was compensation as a non-employee. 

 Since this was not for services performed and it was simply a travel grant, you will not be able to deduct your mileage from this as this is not self-employment income.  The only time you can deduct mileage is if you are self-employed (other than donation or seeking medical care miles)

To enter this using the 1099-NEC select the following:

1. Income
2. 1099-NEC
3. Enter the 1099-NEC info
4. Enter the description
5. Select this is not money earned as an employee or self-employed individual.  It is for sporadic activity or hobby. 

[Hal_Al]

It's "borderline" on how it should be reported.  Based on the info provided, I agree with @Vanessa A , "other income" is the most likely the proper way. 

But, you do say you are a doctoral graduate student.  A case could be made for a third choice,  that this is stipend income.  This would only make a difference if you are, or can be claimed as a dependent and how much other income you have.  Stipend income is treated as earned income in the calculation of a dependent's standard deduction (earned income + $450). 

How to Enter stipend income

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).

After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational  expenses".  So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1 (this line was added in 2022).

*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.