Question

1099-NEC for research grant

Forum|Forum|3 years ago
April 15, 2023
1 reply
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I received a 1099-NEC form for research grant money my team of scientists received. A little of this was actually income for me to pay for the work, but most of it is funds for equipment, supplies, and other expenses associated with the work. How do I handle this in my tax return without paying income taxes on ALL of the $ reported?

JosephS1

You should enter the 1099-NEC as part of self-employment income on Schedule C and then deduct all the expenses incurred in receiving the grant in addition to what you yourself spent personally. The net amount is what you will show as income subject to self-employment tax on your tax return. It is not unusual for grantees to actually show a loss after all expenses are recorded. The following steps, shown from TurboTax online should assist you, the steps for TurboTax desktop are similar, but not identical:

On the left side of your screen click on Wages & Income
Scroll down to Self-Employment and click on Show more, then Self-Employment income and expenses
Enter the data as the screens request. Be sure to place a checkmark in all the boxes you had expenses for and enter those expenses as they come.

@botanymom

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