I've received a 1099 MISC for a stipend paid out to me for an NSF summer research program (REU) at an accredited university (out of my home state) over the previous summer. The amount (about 7k) is indicated in Box 3. However, when filling out the 1099 Misc section, TurboTax seems to think that I am an independent contractor and asks me to fill out a Schedule C.
For context, the NSF grant site states "The REU experience is a research training experience paid via a stipend, not employment (work) paid with a salary or wage."
Looking at Publication 970, would this not fall under the category of a student fellowship grant as defined by the IRS, "A fellowship grant is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research."
How do I report this amount? Would it be under "Taxable Scholarships and Fellowships", and how do I report that on TurboTax? If so, how do I ensure the 1099 Misc is properly recorded for matching purposes in TurboTax, as a fellowship, without considering me an independent contractor?
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When you input 1099 go to box 1 and put in under OTHER This is on the 1099 worksheet.
This is what the IRS told my sister in law to do.
You can all the IRS they are very helpful [phone number removed]
Yes, Other Income. Follow these steps:
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