I'm intentionally using exactly the wording of a subject heading from the past, which got an inconclusive answer and last reply is it should be posted as a new thread, due to 2018 changes in tax law (but apparently it never was). My girlfriend got a Fulbright Scholar Award to teach and research for 4 months in a foreign country this past year, and did not receive a W-2 or 1099. If she reports the gross amount she received (most of which is to cover costs of airfare, lodging, etc...) as misc/other income, there does not seem to be a way to deduct expenses. Yet, it seems clear that, for example, if Fulbright includes money to pay for airfare, the cost of that airfare must be a deduction - it makes no sense that airfare reimbursement would be considered taxable income with no way to declare deductions. I've thought of several alternatives, including only showing the net income (after subtracting expenses) as misc/other income, but I'd like to know the correct way to do this. There must be at least a few hundred other Fulbright Scholar Award winners each year with the same question! Someone we know did all of this on a Schedule C, but then we read that this is *not* the correct way to do it for a university professor who does not actually have a regular self-employed business. What is the correct way to show income *and* deductions for a Fulbright Scholar Award?
