My son received a 1099-NEC for his $1500.00 scholarship for writing an essay for a large pharmaceutical corporation. Does he need to pay taxes on this? This amount does not exceed Box 1 on his 1098-T issued from his University. Can I add the $1500.00 to the Box 1 on his 1098-T and ignore his 1099-NEC?
I'm not sure why the company issue a 1099-NEC. He's not an employee and didn't provide any services for them.
If we take a less aggressive stance on this, Does he need to file his own return because of the 1099-NEC and pay taxes? or Can I do this under my return?
Please share if you have encounter this scenario. Your help is appreciated.
Thanks,
Al
