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.

Excluding fellowship amount from self-employment tax

I received a summer fellowship in 2019 from a federal agency and was informed that:

 

"As defined under Revenue Ruling 60-378, this summer research award is taxable income, but is not subject to self-employment taxes" (full text copy-pasted at the end)

 

I received a 1099-MISC for the fellowship amount. I don't know how to use turbotax to report this income without also incurring self-employment taxes.

 

This is a faculty fellowship, not a postdoctoral/student fellowship and I am not pursuing a degree. I have a regular (9-month) faculty appointment for which I have a W2.


Question: How do I report this income? As a business? If so, how do I exclude the amount from self-employment tax? Thanks in advance for any pointers!

 

Here's the full text of the memo sent to us:

 

"Based on the award process at Systems Plus, awards are not necessarily conditioned upon the performance of services or the provision of the results of research. Systems Plus does not claim any rights to the results of the research or the right to publish the results. The awards are generally provided to further a general body of knowledge, as opposed to providing a special benefit only to Systems Plus. As defined under Revenue Ruling 60-378, this summer research award is taxable income, but is not subject to self-employment taxes. If, for any reason, the award requires the recipient to teach, or perform research that benefits Systems Plus, then the award is subject to self- employment tax. Systems Plus does not have authority to make tax rulings; therefore, Systems Plus strongly recommends that the fellow consult a tax advisor or an IRS representative to determine the proper treatment for the award."

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.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies