Alright, follow my direction on exactly how to do this so that it is not reported as self-employed income so you don't have to pay those nasty self-employment taxes.
- Federal>income and expenses
- Other common income>Form 1099-MISC>start or revisit
- Fill in your 1099 Misc information including the amount in box 3
- Describe the reason for this 1099-MISC Give it a brief description
- Does one of these uncommon situations apply? if it is part of a research study you can check that otherwise say none
- Next it asks Did the fellowship involve work that's like XXX main job. You will probably say no.
- then it asks How often did Brad get income for fellowship? You will answer this question according to your circumstance
- Now this is important. it asks if Did the fellowship involve an intent to earn money? if you say yes, then you will need to pay self-employment tax. If you didn't expect to benefit financially, then you will say no. Follow your heart.
- If you paid federal income tax and if it is reported on the form, when you enter your 1099 MISC, there will be a check box that you will check indicating has other information in boxes 1-18. You will enter the federal income tax withheld in Box 4 and the State income tax withheld in Box 16 along with the remainder of the state information in Boxes 17-18.
Hope this helps !!
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