Yes. You need to report the 1099-MISC income because otherwise you will have a mismatch with information sent to the IRS.
However, Fellowship Income is not subject to Social Security and Medicare (self-employment tax).
Since taxable fellowships have to be reported as wages, we want the amount to go to line 7 of the Form 1040. Make sure you remove any/all the entries you may have previously made for this fellowship.
Here is how to enter your fellowship income in TurboTax:
- Go to Federal Taxes (Person if using Home & Business)
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Wages and Income (Personal Income if using Home & Business)
- I'll choose what I work on
- Scroll down to Less Common Income Section
- Click start across from Miscellaneous Income, 1099-A, 1099-C
- Click start across from Other income not already reported on a Form W-2 or Form 1099
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Answer Yes on the Other Wages Received screen
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Continue twice past Wages Earned as a Household Employee and Sick or Disability Pay
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Answer Yes on the Any Other Earned Income screen
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Select Other on the Enter Source of Other Earned Income screen
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Enter the appropriate description and amount under the correct individual on the Any Other Earned Income screen
