graduate stipend 1099-misc

Forum|Forum|6 years ago
January 25, 2020
3 replies
0 views

Hi,

As a graduate student, I have been both non-comp and comp worker in 2019 so I have both W-2 form and 1099-MISC. For both incomes, I have a lot of amount for federal income tax withheld and state tax withheld.

Following the advice on putting fellowship information on Deductions and Credits section other than 1099 - MISC, I found that the amount that I am getting back has decreased. I believe that the amount must increase as I have tax already withheld on my 1099 MISC income, but there was not an area that makes me record the amount of tax withheld.

Would you help?

MarilynG

Level 15

No, you must enter your 1099-Misc as Income. Type '1099misc' in the Search area, then click on 'Jump to 1099misc'.

Follow the prompts in TurtboTax to indicate the type of income (stipend).

You are able to enter any Taxes Paid on the entry screens for both W-2 and 1099-Misc. On the 1099-Misc, check the box 'My form has other info in Box 1-18' to open the entry area for Tax Paid.

If you expect to continue receiving this income, you can report it as Self-Employment Income on Schedule C and deduct Expenses against it.

If you will not continue receiving the income, click the link for instructions on how to report it as Other Taxable Income.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

seohee

Level 2

Thank you for your reply:

I still see a lot of posts that for the graduate fellowship, I must not use 1099 MISC but rather other income, as I am not self-employed. Also, if I put the amount in 1099 MISC, the IRS will charge me double the tax as self-employer is required to do so.

So my question is: I am sure that my tax withheld are fully refundable but the amount decreases as I type my amount into 1099 MISC. What should I do?

MarilynG

Level 15

1099-Misc income is taxable income, whether it is reported as Self-Employment or Other Income. The tax you paid on your 1099-Misc income is not necessarily refundable to you, depending on your total income, total tax due and total taxes paid.

One advantage of reporting 1099-Misc income as Self-Employment Income is that you can claim Expenses against the income, reducing your taxable income. You are not double-taxed; your 1099-Misc is only reported on your return once.

Click the link for info on correctly entering your 1099-Misc.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

JamesG1

Level 15

This explains the circumstances when graduate stipends are taxable income.

Follow these directions:

Down the far left side, click Federal.
Across the top, click Wages & Income.
Under Your Income, find Less Common Income. Click Show more.
Under Miscellaneous Income, 1099-A, 1099-C, click Start.
Click on Other income not already reported on a Form W-2 or Form 1099.
Click Yes on Did you receive any other wages?
Continue past Wages earned as a household employee.
Continue past Sick or disability pay.
Click Yes on Did you earn any other wages?
Choose Other under Enter source of other earned income.
Enter the income under the Any other Earned Income screen.

See also here.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Anonymous

Following those instructions the income ends up on schedule 1 line 8 which carries to Form 1 line 9. However the IRS instructions for Form 1040 line 1 say this income should be included with W2 income reported on line 1 and you write SCH to the left of the box. How do we get that to happen?

From https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

• Scholarship and fellowship grants
not reported on Form W-2. Also enter
“SCH” and the amount on the dotted
line next to line 1. However, if you were
a degree candidate, include on line 1 only the amounts you used for expenses
other than tuition and course-related expenses. For example, amounts used for
room, board, and travel must be reported
on line 1.