Tax Question--1099 MISC Box 3, Other Income, Summer Research Stipend

[CT1417]

@BelknapPoint

In summary, kiddie tax will not come into play, but SE tax may be due, and no one is really certain about the answer to that one.

If the 1099-MISC amount is a scholarship meant to be a housing stipend, there should be no tax owed (even SE tax). If the 1099-MISC amount is wages for personal services, SE tax is probabkly owed. I would contact the school and ask what their understanding is concerning the $4,400 payment reported on the 1099-MISC.

Thanks. I think that is a good idea, however, I am fairly confident that my son won’t get anywhere contacting the school, but I will ask him to do so. I anticipate one of those ‘consult your accountant’ responses, but hopefully I will be surprised!