Location: California
My daughter received a post-baccalaureate internship from a private organization. She is being trained at the organization in her field and working on related projects. She is not an employee. She is not a CA resident. She is just there for her internship and then returning home.
She inquired about tax documents, and they sent her a letter with this information.
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This information is being provided in reference to the grant you received from the [Name of Trust] for 2021. We are not required to report the following payments and benefits to the Internal Revenue Service or the California Franchise Tax Board.
Cash: (dollar amount listed)
Conference & Misc: (dollar amount listed)
These items are being paid as scholarship/fellowship per Internal Revenue Code Section 117. You should consult your tax return preparer for advice on the taxability of this information.
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We reviewed the following:
Instructions for Forms 1099-MISC and 1099-NEC - "Scholarships. Do not use Form 1099-MISC to report scholarship or fellowship grants ... Other taxable scholarship or fellowship payments (to a degree or nondegree candidate) do not have to be reported to the IRS on any form, unless section 6050S requires reporting of such amounts by an educational institution on Form 1098-T. See section 117(b)(d) and Regulations section 1.6041-3(n) for more information.
Internal Revenue Code § 117. Qualified scholarships - this doesn't appear to apply. She is not attending a educational institution and she is not seeking a degree.
I would have expected maybe a 1098-T, but the org says they aren't required to report the money and aren't providing one.
