My daughter is a fell time student. For this year she received a W-2 From the state, and a 1099-G from the NIH. I cannot find clear instructions on what must be done. Can I use 1040EZ and add in the 1099 as though it is a second W-@?
IANATL but a quick search and experience says no. You have to fill out a Schedule C to account for the 1099 income.
No. 1099-G does not contain earned income. She might report it on line 3, but…
Wait, from the the NIH? Is this an NRSA stipend? If so, then she needs to determine what portion of the stipend is taxable, and report that on line 1. Check out IRS Publication 970.
CPA checking in.
It is lkely as long as she is over the income limit required to file, or wants to file to get her W-2 withholding back, she will have not be able to use form 1040ez as that form does not support the type of income from a 1099G unless it is unemployment compensation. The 1099G income is likely not subject to self-employment tax and should be reported as “other income” not subject to SE tax on line 21 of Form 1040.
Hope that helps.
Nothar, that helps quite a bit. In fact it helps perfectly.
Thanks,
Dave
BTW, I am intelligent, and yet this extremely limited tax return (one W-2, one 1099G) took me a long time. And it was not just the fact that the 1099G for stipend is uncommon. There are instructions that are just hard because they are opposite the way things are commonly done (subtract line 42 from line 41), or complex and hard to follow (imput the result on line 43. If line 43 is less than line 23 enter 0). For my own taxes I use turbotax, and that is simple, with easy to undertand questions and inputs.
If you already have Turbotax installed, you can do your daughter’s return using the same program, without violating the license.