Yes. You need to report the 1099-MISC income because otherwise you will have a mismatch with information sent to the IRS.
However, Fellowship Income is not subject to Social Security and Medicare (self-employment tax).
Since taxable fellowships have to be reported as wages, we want the amount to go to line 7 of the Form 1040. Make sure you remove any/all the entries you may have previously made for this fellowship.
Here is how to enter your fellowship income in TurboTax:
- Go to Federal Taxes (Person if using Home & Business)
- Wages and Income (Personal Income if using Home & Business)
- I'll choose what I work on
- Scroll down to Less Common Income Section
- Click start across from Miscellaneous Income, 1099-A, 1099-C
- Click start across from Other income not already reported on a Form W-2 or Form 1099
- Answer Yes on the Other Wages Received screen
- Continue twice past Wages Earned as a Household Employee and Sick or Disability Pay
- Answer Yes on the Any Other Earned Income screen
- Select Other on the Enter Source of Other Earned Income screen
- Enter the appropriate description and amount under the correct individual on the Any Other Earned Income screen
This should be reported as "Other Income". to enter in TurboTax, while in your return:.
- Type "Other Income" in the search window
- Click on "Jump to Other Income"
- Enter the information from your Form 1099-MISC, and click on Continue
- Enter a description such as "Fellowship" and click on Continue
- On the screen with "Does one of these uncommon situations apply?", indicate "None of these apply"
- Answer "No..." to "Did the Fellowship involve work that's like your main job?"
- Answer "I got it in 2019" when asked "How often did you get income for Fellowship?"
- Answer "No, it didn't involve an intent to earn money."
The amount will be reported on line 8 of Schedule 1 (Form 1040).
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