[centsster]

Please help,

I'm a "resident" for tax purposes on a F-1 visa, cause I came to US in 2000. I got a "Fellowship" from another university (not the one that issued my F-1), and they sent me a 1099-MISC form! I do not have work permit, and when I talked with the International Student Office then, it's all right for me to receive fellowships. But why 1099-MISC? If I report tax like this, wouldn't it mean that I illegally worked?? I did no work for that school, I just received a non-service research fellowship. What to do?? Please advise... [If it has any relevance, I'm a S. Korean citizen, the vocher on the fellowship I got says "Fellowship"... ]

Thanks, it's just so painful dealing with Int'l student office (people in my schools treat me like an annoyance, criminal investigation target), and the school that gave fellowship people are just so slow on everything... never even have issued a check for an international student, and I have no one else to ask)...

[AtlantaTaxExpert]

You will NOT have worked illegally, since fellowship money is NOT considered compensation for work.

They should have issued Form 1042-S, but it is not a huge problem. Just claim the income, either on Schedule C (if Box #7 of the Form 1099-MISC has the dollar figure in it) or on Line #21 (if Box #3 or #8 has the dollar figure in it.

If you want, you can attach a statement with the Form 1099-MISC to the tax return explaining the reason for the Form 1099-MISC. It is likely the IRS will just process the return with no notice as to why it is on the tax return.

[centsster]

Thank you so much for your advice. I have asked them and they said they issued a 1099-MISC instead of 1042-S because I'm a "resident for tax purposes." But from what you say, it seems like I should still be getting 1042-S for fellowship money. In any case, since it won't matter, I'll just use this form. I'm so glad that you are out there (here:) to give advice. It's not really easy to ask around, being still so un-acculturated and having no relatives/close ones in the US!! Thanks!

[AtlantaTaxExpert]

I forgot about the five-year rule. Is the income on the Form 1099-MISC in Block #3 or Block #7?

[centsster]

Hi, thanks for the reply...

It's $9,000 on 1099-MISC block #3; there's nothing in any other boxes. So according to your above guide, I should write it in Line #21. On 1042 form, right?

[AtlantaTaxExpert]

Yes, that is correct. Report it on Line #21; attach a statement explaining the income to the IRS.