Thank you so much, @Hal_Al , @Opus 17 , and @DavidD66 .
Her college, where she is a full-time student, sponsors a junior practicum. Students receive a flat amount (stipend) for completing research or some type of internship with a supervisor. There is no hourly wage, and it is meant to support their expenses in completing the program, I believe. They then receive academic credit for the program. The payment came from the college. So, it sounds like this should be taxable fellowship money, right, for which she would owe taxes if she earns above the $12,950 threshold, is that right?
Based on other threads, I've added the amount of the stipend in the education deductions part of TT. She did receive a 1098-T for other scholarships and grants, so I added this stipend to that other amount as permitted in TT. Right now, TT is showing no federal taxes due and $6 state refund (which I wouldn't bother pursuing - it costs more to file!). I just want to be sure I've done this correctly since she received a 1099-NEC, and I'm not formally reporting an NEC (although I am fully reporting the amount of the stipend reported in the NEC). I truly appreciate whatever steps you can specify in TT to make sure we're fully compliant. Thank you all so much!!
