@Erin03 wrote:
Thank you both so much. Yes, this internship was required for her degree plan, but it was not set up by the university. She had to find it. She received a 1099-MISC that says:
"NONEMPLOYEE COMPENSATION 7" $1300
As I said, I couldn't find the guidance I was looking for that internships required for a degree are not subject to SE tax. I think you are probably on solid ground if you report this as "other income." But, I am not your accountant who you have hired to provide expert advice. If the IRS sends a letter, it will say something like "You forgot to pay self-employment tax, so we are billing you $200. If you don't think you owe the tax, send us a letter explaining why by this deadline _______" and you will make your argument. (Don't ignore the deadline because the judgment becomes final and not subject to appeal if you just ignore it.)
