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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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‎February 17, 2025
8:48 AM