I was paid a research stipend from my university and they sent me a 1099-MISC with the paid amount reported in box 7. How do I report it as income without it being SE?

I was paid $2,700 for doing research in a lab. To my understanding, this should not count as self-employment income, and of course I wouldn't want to pay SE tax on it. Are there steps I can take on TurboTax to report it accurately without it counting as self-employment? Should my school have reported the $2,700 in box 3 instead? If so, should I get them to re-file it?

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1 Best answer

Expert Alumni

Jun 6, 2019 12:11:50 PM

You are correct, this should not be reported in box 7 of a 1099-MISC. See the instructions for 1099-MISC: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf (page 2). You may have already read this.

" Do not use Form 1099-MISC to report scholarship or fellowship grants. Scholarship or fellowship grants that are taxable to the recipient because they are paid for teaching, research, or other services as a condition for receiving the grant are considered wages and must be reported on Form W-2."

If you can't get the payer to correct the 1099-Misc, I would still report the income as wages, but be prepared to provide verification of your status if the IRS questions you.

Go to Federal Taxes> Wages and Income.
Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice).
Choose Other income not already reported on a Form W-2 or Form 1099.
Answer Yes on the Other Wages Received screen.
Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
Answer Yes on the Any Other Earned Income screen.
Choose Other on the Enter Source of Other Earned Income screen.
Enter your fellowship information on the Any Other Earned Income screen.

This will report your fellowship on line 7 of your Form 1040. You will not pay SE tax on this stipend.

[Edit 03/11/18 11:50 AM]

Expert Alumni

Jun 6, 2019 12:11:50 PM

You are correct, this should not be reported in box 7 of a 1099-MISC. See the instructions for 1099-MISC: https://www.irs.gov/pub/irs-pdf/i1099msc.pdf (page 2). You may have already read this.

Go to Federal Taxes> Wages and Income.
Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice).
Choose Other income not already reported on a Form W-2 or Form 1099.
Answer Yes on the Other Wages Received screen.
Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
Answer Yes on the Any Other Earned Income screen.
Choose Other on the Enter Source of Other Earned Income screen.
Enter your fellowship information on the Any Other Earned Income screen.

This will report your fellowship on line 7 of your Form 1040. You will not pay SE tax on this stipend.

[Edit 03/11/18 11:50 AM]

New Member

Jun 6, 2019 12:11:52 PM

Hi, I forgot to add that I also happen to be a part-time employee for the school, and I've received a W-2 from them for that part-time work (completely separate from the research stipend.) Can I just file a Form 8919 instead of jumping through all those hoops of trying to get them to correct it and possibly explaining to the IRS my status?

Expert Alumni

Jun 6, 2019 12:11:54 PM

No, because the Stipend is not subject to Social Security and Medicare tax, which is the primary purpose of Form 8919. You can get the 1099-MISC corrected or not, but either way, you'll report your income as shown above.

New Member

Jun 6, 2019 12:11:55 PM

Thank you. You've been very helpful. Final question:
I am claimed as a dependent by my parents. If my net income for the year (w2 + 1099) is less than 6,350 (but greater than NY's standard deduction of 3,100), do I have the option to not file taxes at all? I was told that I am required to file simply for the fact that I received a 1099-MISC. Is this true?

Expert Alumni

Jun 6, 2019 12:11:57 PM

In your case, you really do need to file a return, and it's because of the 1099. It's being reported as if it's self employment income.

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I was paid a research stipend from my university and they sent me a 1099-MISC with the paid amount reported in box 7. How do I report it as income without it being SE?