BulldogTom Posted January 29, 2017 Report Share Posted January 29, 2017 Student at university accepts a summer internship with SETI Institute (search for extra terrestrial intelligence) doing research projects. Paid a flat $5000 for the summer session. SETI issued a 1099MISC box 7. Obviously, student is not in the trade or business of searching for aliens. Student is a student trying to pay tuition and get a resume item. But I can't seem to find a specific piece of guidance that says an educational stipend for research is exempt from SE tax. Any help would be appreciated. Tom Newark, CA Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted January 29, 2017 Report Share Posted January 29, 2017 This seems to imply that it is subject to SE and should have been on a W2. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted January 30, 2017 Report Share Posted January 30, 2017 8 hours ago, BulldogTom said: Student at university accepts a summer internship with SETI Institute (search for extra terrestrial intelligence) doing research projects. Paid a flat $5000 for the summer session. SETI issued a 1099MISC box 7. Obviously, student is not in the trade or business of searching for aliens. Student is a student trying to pay tuition and get a resume item. But I can't seem to find a specific piece of guidance that says an educational stipend for research is exempt from SE tax. Any help would be appreciated. Tom Newark, CA I don't know if you are being serious, but why did the student take the $5000 if their not in the business of looking for aliens? Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted January 30, 2017 Report Share Posted January 30, 2017 I think that if the intern is employed by a non-profit, they can pay a nominal amount (20% or less of what someone in that position would normally be paid) and issued a 1099. If a for-profit, then it should be on a W2. Either way, it is subject to social security or self-employment tax, whichever applies. At least, that is what I gathered from a quick Google search. Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted January 30, 2017 Report Share Posted January 30, 2017 The student is subject to FICA whether working as employee or contractor since obviously worked on a regular continual basis, despite the fact he was trying to earn tuition. There are a few exceptions I am aware of including 4 year med student, that doesn't seem to be the case here. Also some exception for foreign students. The only option is challenge the university with SS-8. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted January 30, 2017 Report Share Posted January 30, 2017 Subject to SE. Should have been reported in box 7 of the 1099-MISC. Quote Link to comment Share on other sites More sharing options...
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