My daughter is pursuing a bachelor’s in biochemistry and working on a capstone research project. Her professor helped her apply for a grant of $5,000 from a non-profit which she was awarded. The non-profit sent the $5,000 to the university. I paid all her tuition, room and board, etc. so the funds were not used for those expenses. The university transferred the money to my daughter’s bank account. She used very little of these funds for her research—maybe $200-300 for some misc supplies and she has completed the research project.
She also works part-time for the university and earns about $200 per month.
She received a W2 for the part time work (approx $1,800) and a 1099-NEC for the $5,000.
Do I need to fill out a schedule C for the $5,000 grant and try to scrounge up as much expense as we can find to reduce this self-employment income?
Posted by debithoo