I received a 1099-misc for a research grant for Graduate work at the University of Washington from UCLA. How do I enter the 1099-misc plus expenses into turbo tax?

[rw-palmer]

Turbo Tax wants to place the 1099 in business which I deleted. I entered the amount in Expenses and scholarships > Then edit educational expense Summery > Edit Scholarships and grants > Placed amount of 1099 into Other Scholarships/Grants/Fellowships > Answer No, to Did your Aid Include Amounts not awarded for 2017 Expenses > answered Yes, Did you pay for Room and Board with a scholarship or Grant because the statement below said Tell us if used a scholarship, grant or fellowship to pay for room and board or for one of these other expenses: research, travel, Clerical help. The amount used was the total amount on the 1099-MISC. I type it into Total Used because it was research and continued. I was not taxed on any of the 1099 - MISC. I ran the analysis and it said OK. Did I enter the 1099-misc correctly or is there a bug in the analysis?

[CarolC]

I'm not certain if your 1099-Misc entries are correct as any scholarship, grant, or stipend received that is not used for tuition, books, expenses (paid directly to the school) is taxable income.  So to enter education expenses, you would need to enter your 1098-T, tuition statement, and account for your qualified education expenses in that section.

Any other expenses such as room and board, research, travel, clerical, are not qualified education expenses and are therefore the income received for this work is taxable.   

If your 1099-Misc reported your income in Box 3, then any expenses incurred to receive this income are reported on Schedule A as an itemized deduction.  If your income is reported in Box 7 on your 1099-MISC (which is generally not the case) then you will report the income as self-employment on a Schedule C.  Here you are allowed to deduct your expenses incurred.

Follow these steps to enter the 1099-Misc Box 3 income in TurboTax:

1. Click the Search Topics button located at the top of your screen
2. Type 1099-Misc
3. Select 1099-Misc other income
4. Complete the entries

Here's more help for completing this section in TurboTax: 

• Describe the reason for this 1099-MISC.  You can enter Research Grant.
• Does one of these uncommon situations apply?  Select (You) were in a research study and this was the payment.
• Select No to Did you perform a service to earn the money UCLA paid you?
  

If you did perform services, then the income would be considered self-employment income.

[qili0547]

Thank you. One question. I have 1500 dollars in item 4: income withheld. How to relax this tax i already paid?