I am a military member and ROTC instructor at a major university and am working on an advanced degree at the university. The university considers me a faculty member and gives me break on tuition and sends me a 1099MISC. Is this considered income and if so how is it taxed? Am I required to pay social security and medicare tax on this? I have heard that $5500 of this is exempt, is this true? I am not paid any income from the university.
