You do need to pay income tax on the amount, but not Self-Employment.
You have options on how to enter it.
As a Scholarship/Grant/Fellowship in the Education Section as explained above
then
Enter the withholding under
Deductions & Credits
Estimates and Other Taxes Paid
Other Income Taxes
Other Income Taxes Paid in 2022
Withholding not already entered on a W-2 or 1099
This will put the income properly on Schedule 1 line 8r
OR
Enter it as a 1099-MISC
Select My form has other info in boxes 1-18 to enter the withholding
Type Fellowship in the description box
Select "I was in a research study" and No to Did you perform a service" so it won't be flagged as Self-Employment
This option puts it on schedule 1 and is taxed properly, but it will be on line 8z rather than 8r.
@J_34
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