turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I received a stipend for a program I was a part of and they gave me a 1099NEC. I am not self-employed is there a way to reduce the taxes on this?

 
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

3 Replies
KrisD15
Expert Alumni

I received a stipend for a program I was a part of and they gave me a 1099NEC. I am not self-employed is there a way to reduce the taxes on this?

No, the 1099-NEC (Non-Employee Compensation) can only be reported as Self-employment income. 

The main reason is that the internship does not go through the hassle of establishing you as an employee, so does not pay your FICA (Social Security) tax. 

 

Your "Self-Employment tax" is the FICA tax you would have had withheld had you been paid as an employee. 

You do pay both halves (Employer and Employee) but you get a credit for half, so it ends up the same as if you were paid with a W-2. 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

I received a stipend for a program I was a part of and they gave me a 1099NEC. I am not self-employed is there a way to reduce the taxes on this?

Shouldn’t they have filed a 1099MISC instead of a 1099NEC since I am a student who was interning during the summer and received a stipend through the program? 

PatriciaV
Expert Alumni

I received a stipend for a program I was a part of and they gave me a 1099NEC. I am not self-employed is there a way to reduce the taxes on this?

You may wish to contact the program that sent Form 1099-NEC to confirm they intended for this to be earned income rather than an honorarium. Generally, a 1099-NEC is meant to report services from someone who is not an employee (an independent contractor) and is subject to self-employment taxes.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies