KrisD15
Expert Alumni

Get your taxes done using TurboTax

Yes, you should still select that response since you are not really doing "work" or a side job, and you should not need to pay self-employment tax on a stipend or grant. 

 

One of the reasons the IRS resurrected Form 1099-NEC is to distinguish Self-Employment income (1099-NEC Non-Employee Compensation) which IS subject to Self-Employment (FICA) tax from everything else  reported on Form 1099-MISC. 

 

The IRS does not address this directly however;

Pub 970

 

“ certain non-tuition fellowship and stipend payments not reported to you on Form W-2 are treated as taxable compensation “…..

“These include amounts paid to you to aid you in the pursuit of graduate or postdoctoral study and included in your gross income under the rules discussed in this chapter. Taxable amounts not reported to you on Form W-2 are generally included in gross income as discussed later under Reporting Scholarships and Fellowship Grants.”…

Include any taxable amount not reported to you in box 1 of Form W-2 on Schedule 1 (Form 1040), line 8r.”

 

Schedule 1 line 8r is "Other Income" and not treated as Self-Employment. 

To get the income from the 1099-MISC to this line on your tax return, answer no to being like your work. 

 

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