Hello all,
I am an international PhD student (not a candidate yet) and need some help.
Last year, I received both a taxable stipend (W-2, not more than $10,000) and a nontaxable fellowship (1099-MISC). I put the information from W-2, seems no problem. And I followed the following steps from
@DaveF1006's reply so that it is not reported as self-employed income. I also put both federal and state income tax withheld (box 4 and 15) to get a refund of withholding.
1. Federal>income and expenses
2. Other common income>Form 1099-MISC>start or revisit
3. Fill in your 1099 Misc information including the amount in box 3
4. Describe the reason for this 1099-MISC Give it a brief description
5. Does one of these uncommon situations apply? if it is part of a research study you can check that otherwise say none
6. Next it asks Did the fellowship involve work that's like XXX main job. You will probably say no.
7. then it asks How often did Brad get income for fellowship? You will answer this question according to your circumstance
8. Now this is important. it asks if Did the fellowship involve an intent to earn money? if you say yes, then you will need to pay self-employment tax. If you didn't expect to benefit financially, then you will say no. Follow your heart. - I said no
9. If you paid federal income tax and if it is reported on the form, when you enter your 1099 MISC, there will be a check box that you will check indicating has other information in boxes 1-18. You will enter the federal income tax withheld in Box 4 and the State income tax withheld in Box 16 along with the remainder of the state information in Boxes 17-18.
Then, I wanted to claim the tax treaty (US-Korea tax treaty Article 21) and followed 'some' of steps from
@KarenJ2.
What I did was
1. Click on Federal on the left hand side of my screen
2. Click on Wages & Income
3. Scroll down to Less Common Income
4. Scroll down to Miscellaneous Income , 1099-A, etc
5. Click on Start or Update
6. Scroll all the way down to Other Reportable Income
7. Click on Start
8. Add a Miscellaneous income item
9. Input description of my wages
10 For the wage amount, enter my treaty exemption as a negative number to offset the amount from 1099-MISC box3 (other income)
So finally, I have
Job (W-2): $a,aaa
Income from Form 1099-MISC: $bb,bbb
Miscellaneous Income, 1099-A, 1099-C: -$bb,bbb
But there are two problems.
1. If I do this, my income is basically $a,aaa which is low, so I am getting an 'Earned Income Tax Credit.
2. Only income from Fellowship (1099-MISC) is tax-exempt but I am also getting a full refund of tax withholding from W-2 (both federal and state).
Would you be able to tell me how can I solve these? I would really appreciate your help!
