Received 1099-NEC for summer research

Forum|Forum|4 years ago
February 1, 2022
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I received a stipend for research I did the summer after graduating/before starting grad school (in the same lab I worked in throughout undergrad). I was classified as a 'contractor' by my PI/department/university in order to avoid going through HR for a ~10 week research period thus I received a 1099-NEC. When I go to file it, it says I owe ~$1.7k in taxes on it ($5k stipend) but I believe that's because it's under the impression I was 'self employed' but this wasn't the case. There weren't taxes taken out of it originally. Is this correct or is there a more appropriate way to address this? Previously, I did summer research through an NSF REU and didn't owe taxes on it as it was funded through a fellowship/stipend (similar case here, the $5k came from a grant). Every question with similar scenarios gives different responses given the NEC was introduced in 2020 and I'm unfamiliar with these things.

Not A Product Question

LeonardS

You are required to report your stipend of $5K as income on your tax return. You will enter the stipend as other income that is not subject to self-employment tax.

To enter your $5K stipend sign in to your TurboTax account if it is not open and follow these steps:

Select Income & Expenses.
Scroll down to Less common income and select show more.
Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
On the page Any Other Taxable Income select yes.
On the page, Other Taxable Income enter the description and amount.
Select continue.
Select done on the next page