KrisD15
Expert Alumni

Investors & landlords

None of the expenses qualify as education expenses, however if the payment was made on Form 1099-NEC, they are treating the student as a self-employed subcontractor.  (Normally Fellowships are reported on a W-2 or possible 1099-MISC.)

 

Since the payment is on Form 1099-NEC, the student will need to report that as Self-Employment income. 

This will require Schedule C be included with his return. 

With this said, he will be able to deduct business expenses that are necessary and reasonable.

If there is self-employment income, there will also be Self-Employment tax on that income which is the FICA an employer usually handles. 

 

HERE is an IRS link to help you decide which expenses can be claimed.

 

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