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Question
I received a 1099-NEC for my graduate school stipend and I cannot get it corrected. What should I do on my tax return?
AI accountant’s answer:
I'm not a tax professional, but I can offer some general guidance. If you received a 1099-NEC for your graduate school stipend and you believe it's incorrect, you should still report this income on your tax return to avoid any issues with the IRS. If the stipend was for a fellowship and you're not considered an employee, you would generally report the income on Line 8 of Schedule 1 (Form 1040) as "Other income." You can include a brief description, such as "Fellowship Stipend." This income is subject to income tax, but not self-employment tax. However, if you believe the stipend should've been reported on a W-2 as wages or if you're disputing other details of the 1099-NEC, you might want to contact the issuing institution to discuss the situation and seek the advice of a tax professional regarding properly reporting the income on your tax return.
Comment from reviewer
Ieva Ivanauskas, EA
Not Correct.
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