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February 3, 2023
Question

I received a 1099-NEC for a paid internship how do I prevent paying self-employment tax when I am not self-employed?

  • February 3, 2023
  • 1 reply
  • 0 views
I am in a paid internship for graduate school and received a 1099-NEC for my stipend payment. Turbotax is making me pay self-employment tax but I am not self-employed. How do I get around that? The company I am interning for controls what I do and I have to follow company rules and standards so I should be considered an employee not an independent contractor.

1 reply

February 3, 2023

Congratulations on getting an award! IRS Pub 970, states a tuition reduction you receive for graduate education is qualified, and therefore tax free if both of the following requirements are met:

  •   It is provided by an eligible educational institution. 
  •  You are a graduate student who performs teaching or research activities for the educational institution. 

You must include in income any other tuition reductions for graduate education that you receive.

 

To enter your 1099-Misc

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