My wife is a graduate student and normal receives income that is reported on a W-2. During the year she also performed research that was set up in the form of her own business. She received a separate 1099-MISC for this business with income reported in box 7, paid gross receipts tax, and this was declared on a schedule C. Additionally she performed a separate summer research project where she was paid a stipend of $4000 that was reported in box 3 of a 1099-MISC. Does this also need to be reported as business income on a schedule C and be taxed accordingly, or can it be reported as other non-work related income without intent to earn money? Thanks!
