Hello -
My daughter conducted a Summer Undergraduate Research Fellowship (SURF) at the Mayo Clinic last summer. Mayo sent her a 1099Misc reporting $6000 in box3. I am somewhat confused on how to report this on her taxes. Technically I can still chose to claim her as a dependent as she was a Junior/Senior in 2024 and was 22 in 2204 (and I meet all the other requirements for a dependent).
If I report the 1099Misc in the wages section, TT wants to setup a Schedule C and assume she is a small business but this is not the case. I then get into "unearned income" that then is also being taxed at my rate (Kiddy Tax) and not her rate.
I've also seen other comments where I should instead be reporting this in the "Educational Summary -> Scholarships/Grants (for all schools)" as "Other Scholarship/Grants/Fellowships" and as long as the total scholarships she has reported on her 1098T (box 5) and this Mayo 1099Misc is less than the amount reported in Box1 of her 1098T, then the fellowship is not taxable?
Is the latter the correct way to report this for her? If so, how do I tell the IRS that the 1099Misc is reported in the Educational Summary Section??
