I received a 1099-NEC from a fellowship program that I participated in last summer through a large organization. I’m not exactly sure how to file this income, because the options to file would consider this as ‘business’ income. Why is this considered self-employment and does it have to be submitted as business income even though it was income for a summer project??
To enter a Form 1099-NEC that is not for self-employment -
Click on Federal (Personal using Home & Business)
Click on Wages & Income (Personal Income using Home & Business)
Scroll down to 1099-MISC and Other Common Income
On Income from Form 1099-NEC, click the start or update button
Or enter 1099-nec in the Search box located in the upper right of the program screen. Click on Jump to 1099-nec
On the screen Did you get a 1099-NEC?, click on Yes
On the screen Do You Want to Enter Your 1099-NECs Now?, click on Add a 1099-NEC
On the screen Let's get the info from your 1099-NEC, enter your information and Continue
On the screen Describe the reason for this 1099-NEC, enter a reason and Continue
On the screen Does one of these uncommon situations apply? -
Select This is not money earned as an employee or self-employed individual, it is from a sporadic activity or hobby and Continue
The amount entered from the Form 1099-NEC will be entered on Schedule 1 Line 8z
The total from Schedule 1 Part I Line 10 flows to Form 1040 Line 8