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csankar01
New Member

Part of my graduate stipends was reported on a 1099-MISC because the source of the funds was not the college where I worked.

As a doctoral student, I am given a stipends that is derived from the college where I work. However, there was an issue that prevented the college from promptly disbursing all of my wages to me and as a result, part of my wages had to come from my boss's private research grant. This caused me to receive a W2, which reflects the majority of the wages I earned, and a 1099-MISC, which reflects the balance that the college was supposed to pay me but instead was paid to me by my boss from his research funds. Considering what I have read about the types of income that are traditionally reported on a 1099-MISC, I will say that I am not a freelancer; the wages reported on the 1099-MISC were monies that were paid to me as a doctoral student employee of the college. 

So my question is:

In addition to my W2, do I still need to file the 1099-MISC or should I be filing an 8919?

1 Best answer

Accepted Solutions
IsabellaG
Employee Tax Expert

Part of my graduate stipends was reported on a 1099-MISC because the source of the funds was not the college where I worked.

Yes, you need to report the income, but not on form 8919. If this is truly stipend income, it shouldn't be reported on 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.

  1. Go to Federal Taxes>   Wages and Income.
  2. Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice). 
  3. Choose Other income not already reported on a Form W-2 or Form 1099.
  4.  Answer Yes on the Other Wages Received screen.
  5. Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
  6.  Answer Yes on the Any Other Earned Income screen.
  7.  Choose Other on the Enter Source of Other Earned Income screen.
  8.   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. This payment is also not subject to Social Security or Medicare Tax (FICA) so there's no reason to file Form 8919.


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3 Replies
IsabellaG
Employee Tax Expert

Part of my graduate stipends was reported on a 1099-MISC because the source of the funds was not the college where I worked.

Yes, you need to report the income, but not on form 8919. If this is truly stipend income, it shouldn't be reported on 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.

  1. Go to Federal Taxes>   Wages and Income.
  2. Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice). 
  3. Choose Other income not already reported on a Form W-2 or Form 1099.
  4.  Answer Yes on the Other Wages Received screen.
  5. Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
  6.  Answer Yes on the Any Other Earned Income screen.
  7.  Choose Other on the Enter Source of Other Earned Income screen.
  8.   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. This payment is also not subject to Social Security or Medicare Tax (FICA) so there's no reason to file Form 8919.


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jtasm
New Member

Part of my graduate stipends was reported on a 1099-MISC because the source of the funds was not the college where I worked.

I am in a similar situation. I am a postdoctoral fellow, and my employer pays me a fellowship stipend (~97% of my income) that is not reported on my W-2 or a 1099MISC, plus a a small supplement (~3% of my income) that is reported on my W-2. I followed the instructions found here and elsewhere and reported the fellowship stipend under "Any Other Earned Income".

 

However, TurboTax has taken me to a section called "Form 8919-T: Reason code must be entered" requiring me to fill out "Form 8919 Uncollected Social Security and Medicare Tax on Wages".

 

Do I need to fill out 8919? Thanks.

LinaJ2020
Expert Alumni

Part of my graduate stipends was reported on a 1099-MISC because the source of the funds was not the college where I worked.

No, you don't need to.  If your fellowship is not supposed to be reported on W-2 or 1099-MISC, you will report as Other Income.  Here are the steps:

 

In TurboTax online,

  • Sign into your account, select Pick up where you left off
  • To the right upper corner, in the search box, type in "other reportable income" and Enter
  • Select Jump to other reportable income
  • Next screen, Other Wages Received, select Yes to continue
  • Follow prompts
  • On screen, " Any Other Earned Income", select No.

This amount will show on line 8 of Schedule 1 and Form 1040. 

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