I got a CP2000 form for 2022 saying I owe over $5k. I’m confused about this. I’m a grad student, and my only income is a stipend. I used TaxAct to file, but they haven’t replied to my questions.
I think it’s showing that I missed paying taxes on some dividends, which might be true since I started dabbling in stocks that year. But what really confuses me is the self-employment tax. My income is just my university stipend, which I already pay taxes on.
Should I just send proof of taxes paid and my salary details? How is this different from my original tax return? Any advice would be great.
How did you report your university stipend on your tax return? Did your university send you any forms, like a 1099-NEC?
The self-employment tax is showing $34,000 of net self-employment income. Usually, grad student stipends are either W-2 income for a job or taxable fellowship income, neither of which count as self-employment. If it was reported incorrectly, the IRS might have flagged it as self-employment income.
@Reed
I’m on the NSF-GRFP fellowship and receive $34k annually, split monthly. I don’t get any forms for this and learned I have to pay taxes myself. I paid $700 federal and $300 state taxes quarterly. On my return, I listed it as ‘other income’ on line 8.
I also have a $3656 W-2 from a summer research job, totaling $37,657 in income.
Some folks here suggest I misreported it, but I believe I correctly listed it under ‘other income.’
@Oaklan
Did you report this on line 8r (for fellowship/scholarship income) or 8z (miscellaneous income)? If it’s 8r, the IRS made a mistake. If it’s 8z, they might think it’s self-employment income, and you’d need to correct them by following the notice instructions.
@Oaklan
Are you sure you didn’t get any forms for the $34k? Check with your university for something like a 1098-T or 1099-MISC. If you find one, you may need to update your return.
Hayden said: @Oaklan
Are you sure you didn’t get any forms for the $34k? Check with your university for something like a 1098-T or 1099-MISC. If you find one, you may need to update your return.
Most fellowship recipients don’t get any tax forms. You have to handle everything yourself. It’s frustrating because tax services like H&R Block often don’t know how to deal with this.
Hayden said: @Oaklan
Are you sure you didn’t get any forms for the $34k? Check with your university for something like a 1098-T or 1099-MISC. If you find one, you may need to update your return.
It’s normal for certain grad income not to come with forms, especially for fellowships. Universities often don’t issue them, so you’re left to figure it out yourself.
@Reed
If you had an NSF GRFP grant, a portion might be seen as self-employment income since no taxes are withheld. You could owe self-employment tax on top of the regular taxes.
Chandler said: @Reed
If you had an NSF GRFP grant, a portion might be seen as self-employment income since no taxes are withheld. You could owe self-employment tax on top of the regular taxes.
NSF GRFP isn’t considered self-employment income. It’s not payment for services.
Chandler said: @Reed
If you had an NSF GRFP grant, a portion might be seen as self-employment income since no taxes are withheld. You could owe self-employment tax on top of the regular taxes.
Some comments suggest amending your return. Just to clarify: don’t amend in response to a CP2000. Follow the instructions in the notice instead. If you file an amended return, it might not reach the right department.
Looks like you didn’t report dividends and might’ve misclassified your stipend. The IRS thinks part of your income was self-employment, which is why the taxes are higher. A tax professional could help you figure this out better than DIY software.
Sounds like the stipend was reported on the wrong line. It should be ‘other income,’ not Schedule C. But if you did report it correctly, the IRS may have just misclassified it.
How was your stipend reported to you? Check your tax return to see how it was listed. The IRS might’ve flagged it as self-employment income based on the information they received.
Look at the ‘Explanation of Changes’ section. If the IRS thinks your income is self-employment, check the type of form your school gave you. You can disagree if it’s not self-employment income.
Vaughn said:
Look at the ‘Explanation of Changes’ section. If the IRS thinks your income is self-employment, check the type of form your school gave you. You can disagree if it’s not self-employment income.
NSF GRFP isn’t self-employment or regular employment. It’s just untaxed fellowship income.
