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Level 2
March 18, 2020
Question

How to report Student Research Internship Stipend

  • March 18, 2020
  • 1 reply
  • 0 views

My son did a "Research Experience for Undergraduates" internship at Binghamton University last summer.

He got a 1099-MISC with the $5,500 stipend reported in box 3 "Other Income."

He's using TurboTax Free Edition and we cannot figure out how to report the stipend in such a way that he doesn't end up owing $600+ dollars of federal tax!

 

  1. Is the huge bill because of self-employment tax?
  2. A stipend for student research should not be treated as self-employment income, right?
  3. Is there a way to enter this income so it doesn't incur self employment tax?

Thanks

1 reply

MarilynG
Level 15
March 18, 2020

If the stipend amount is reported in Box 3 of the 1099-Misc, it is not considered Self-Employment Income; however, it is still taxable as 'Other Income' unless Education Expenses are claimed against the income.

 

Click this link for more info on Taxable Scholarship Income. 

 

 

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Level 2
March 18, 2020

Thank you! Follow on question...since his total income from college job and the stipend was less than $7,000, does he even need to file?

MarilynG
Level 15
March 18, 2020

No, he is not required to file with Earned Income less than $12,200.

 

 

 

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