I have a postdoctoral fellowship and received a 1099-Misc, but it should not be subjected to FICA as self-employed income, how do I enter this into TurboTax?

Forum|Forum|7 years ago
June 3, 2019
16 replies
137 views

I receive a postdoctoral fellowship and a 1099-Misc, but it should be treated as a taxable fellowship and exempt from self-employment taxation. Yet, if I report it through the 1099-Misc in turbotax they will only recognize it as self-employed income and tax it as such. Should I instead report it through the other income option?

TurboTax Deluxe Online

Anonymous

Was the income on the 1099-MISC reported in Box 7? Did you provide any services as a condition of the fellowship (Teaching assistant, research assistant)? Did you get a Form 1098-T?

iferrinoconnellAuthor

Level 2

The income was reported in Box 3, I did not receive a form 1098-T, and I did not provide any services as a condition of the fellowship. However, my income was paid through my employer, I receive health benefits from my employer, and I am definitely not a contractor or self-employed.

Anonymous

Got it. Will post an answer in a few moments

Anonymous

You will enter the amount of the fellowship in the Education section of Deductions and Credits - the Expenses and Scholarship (Form 1098-T) interview. If you have entered the 1099-MISC, delete it. See: How to delete a form

How To Enter Taxable Education Assistance

To claim taxable income from a scholarship or fellowship, here are the steps that you should follow:

1. Start or sign into TurboTax.

2. Complete the Personal Info section.

3. Complete the Wages & Income section if needed. Note: you will not enter your income from a scholarship or other education assistance here.

4. After the Wages & Income section, continue until you’re asked how you’d like to go through Deductions and Credits. Answer Explore on My Own.

5. Select Start or Update for Education Expenses and Scholarships.

6. Follow the instructions on the screens and answer any applicable questions. You will eventually get to the "Scholarships/Grants (for all schools); TurboTax will then calculate the amount is considered income.