The original post in this thread provides instructions for reporting a 1099-MISC for a stipend.
My son has received a stipend for summer internship/research at a university which is different from the one which he attends during the school year, reported on form 1099-MISC box 3.
I am filing a separate tax return for him and using the instructions provided in this thread to enter the amount such that it will be listed as "Other income" (and not self-employment).
At this point, TurboTax calculates a hefty amount of Federal & State taxes. The instructions proceed to explain that I should make the entire amount non-taxable by entering it as a negative number in a separate box.
"Please be sure to write a short explanation and enter the amount as a negative number. At this point, the form 1040 will show full amount as taxable AND as a negative adjustment on line 21"
Tax amount is reduced to zero, but I can't find any websites that could confirm the legality of this strategy.
Can you please confirm that a stipend for an undergraduate summer internship/research at a university which is different from the one that the student attends during the school year, reported on form 1099-MISC box 3 for tax year 2022, is non-taxable?
