<p>^That’s what it seems like to me. My D2’s income is just under the amount that needs to file, but my account advised me to submit a return anyway as the IRS will see the 1099M in a year or two and then question why she didn’t file. I think I’d rather deal with it now than down the line.</p>
<p>Brand new info. D2 has been accepted to another REU at a different university for next summer. She was given formal acceptance papers today and it had the contact info for the person in charge of stipends, travel, etc. I called and asked them how they deal with taxes. She said that they don’t file anything with the IRS (no W2 or 1099) but they do recommend talking to a tax accountant. This seems strange because it is considered taxable income.</p>
<p>I’m really frustrated at this point, as NSF funded programs, they should be consistent and they should clarify the tax ramifications for the students. </p>