1099 NEC for summer college fellowship. Can't I claim income as Misc. Instead of self employment so as to avoid paying self employment taxes?

[MarilynG1]

Yes, you can report your 1099-NEC for summer fellowship as Miscellaneous Income, rather than Self-Employment Income.  

In the Wages & Income section, scroll down the list of topics to 1099-Misc and Other Common Income > Income from 1099-NEC.

On the next page, enter info from your 1099-NEC.  Then a description of the income. 

On the next page, 'Do one of these uncommon situations apply?' choose 'This is not money earned as an employee..'

The income is reported on Schedule 1, Line 8z, and Form 1040, Line 8. 

@Lunabear 

[Lunabear]

Can you clarify - I saw the IRS definition of sporadic activity and it doesn't look like it applies.  My daughter was paid just under $5,000 for 8 weeks of fellowship.  She helped out at a Senior center for 8 weeks as part of curriculum.  

In your response - we can claim the NEC amount into the Miscellaneous income category instead of the NEC section?

[Lunabear]

The money /income is listed as a fellowship award.

[DawnC]

When you mark the box for sporadic activity - TurboTax will report the 1099-NEC under Miscellaneous Income which will not generate self-employment tax.    If the income was received for doing work, the income should be reported on Schedule C, which does generate self-employment tax.   

At the end of the 1098-T entry section, you can enter other scholarships, grants, and fellowship income that was not reported on the 1098-T.   Entering the income there also moves it to Miscellaneous Income.   You have to click through the Education Credits section, and you will come to a screen titled Scholarships and Financial Aid.    You can enter the income there also.