2475875
Hello,
I am currently running into an issue while attempting to declare my 2021 income.
I am currently a Postdoctoral Research Associate apointed to a federal agency through the National Academies of Science Engineering and Medicine (NASEM).
My income is described by NASEM as a non compensatory grant. "Accordingly, the National Academies characterize fellowship awards under the NRC Research Associateship Programs as non-compensatory grants." source: https://sites.nationalacademies.org/pga/RAP/PGA_047746.
As I use this income for room and board etc.. It is taxable as ordinary income. However; no tax documents are provided. All I receive is a "Courtesy letter" detailing the total amount paid by NASEM in stipends, travel awards and healthcare. While filing my 2020 taxes, I declared the income on a 1099-NEC. It was counted as ordinary income.
When attempting to replicate that process this year, both 1099-NEC and 1099-Misc income is counted as "self employed income" which is subject to Social Security taxes etc... The recent changes to these forms make it to where I am not able to use them to declare my income as ordinary income as opposed to self employed.
I know for a fact that I am not self employed. This is a common issue in academia and even was the subject of a court case Spiegelman v. Commissioner of Internal Revenue (1994, 102 T.C. 394).
Some advice I found online is to simply declare the in Form 1040 Line 1 with “SCH” source: http://pfforphds.com/weird-tax-situations-fellowship-recipients/
Please help me out by describing the process by which I can declare this income in TurboTax. I am finding a lot of contradicting information online and am quite lost in the whole process.
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A 1099-NEC is used exclusively to report self-employment income. Apart from reporting direct sales, it has no other purpose. In addition, if you receive income that is not reported on a 1099, you can't say that it was.
You can report it as miscellaneous income. Follow the steps below.
Enter a description and amount.
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