My school sent me a 1099-NEC for my stipend, what should I do?
AI accountant’s answer:
If your school sent you a 1099-NEC for your stipend, it means they consider the payment to be nonemployee compensation. In this situation, you would typically report the amount on Schedule C (or Schedule C-EZ) as self-employment income when filing your tax return.
The income will be subject to self-employment taxes (Social Security and Medicare taxes) in addition to income tax. You can calculate your self-employment tax using Schedule SE.
However, if you believe you received the 1099-NEC in error and that your stipend should be classified differently, you should reach out to the school's financial department for clarification and a possible correction.
A tax pro reviewed this answer:
The stipend is not subject to self-employment tax and should be reported as "Other income."
Not Correct.
Keeper’s AI Accountant V2
V2 is still a fine-tuned instance of GPT-4. Improvements over V1 include more comprehensive tax code embeddings, and a better chain-of-reasoning retrieval system.