Question

Non-educational Fellowship Reported as 1099-MISC Box 7

Forum|Forum|6 years ago
March 8, 2020
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I am not a student, but I received a fellowship from a professional academic society for the year 2018-2019 to act as a Congressional Fellow (scientists go to the Hill and get matched with government offices to provide scientific guidance). In my contract, it was specified that this is NOT an educational fellowship, and my income was reported on a 1099-MISC in box 7 as "nonemployee compensation".

I certainly did not consider myself self-employed during this fellowship, but as I was filling out the TurboTax software, it is steering me to the qualified business income deduction. Is this accurate, that I am considered a self-employed consultant for my work as a fellow? I don't want to take a deduction that I am not entitled to, but I am also confused as to why I would be paying self-employment tax when this fellowship didn't seem like self-employment.

Not A Product Question

L

linaj20201

Generally speaking, IRS considers you as a self-employed when a Form 1099-MISC income is issued to you. Unless this income only happens once a while or a one-time event, IRS expects to see a Schedule C on your tax return. If the contract indicates you will be receiving it as nonemployee compensation, you are considered as self-employed and required to pay self-employment tax.