[jb10025]

Hello,

I've been struggling with this for several tax seasons and I can't seem to get a thorough answer. I'm not sure who to consult for more detailed tax advice because it's such a specialty situation.

I receive a "National Research Service Award" from the National Institutes of Health to conduct research at a university. I am not an employee ("An NRSA stipend is provided by the NIH as a subsistence allowance for Ruth L. Kirschstein-NRSA fellows and trainees to help defray living expenses during the research training experience. NRSA recipients are not considered employees of the Federal government or the grantee institution for purposes of the award." see PA-07-107: Ruth L. Kirschstein National Research Service Awards (NRSA) for Individual Postdoctoral Fellows (F32)).

I receive a 1099-MISC from the university where I do research. I am told that this stipend is taxable. Can I deduct expenses for such things as lunches with other scientists discussing research? Professional memberships? Commuting costs to the university?

Another question: My fellowship comes with a small "supply" budget; I currently use the bulk of this to purchase health insurance (that I am required to have in order to work in a laboratory). This year, the university included this amount on my 1099 form. Is this taxable? Does the fact that it's required change anything?

Any help or suggestions you have would be greatly appreciated!

[MukatA]

Are you a U.S. citizen or resident? If you are a visa holder, which visa and for what purpose?

Normally, 1099-misc means you are independent contractor. You must file your tax return if yourself employed income is $400 or more. You will report your income and expenses on schedule C or C-EZ (Form 1040). This income is subject to SE tax at 15.3%. Read: Your U.S. Tax Return: Tax Filing by Self Employed Sole Proprietor or Independent Contractor