Tax advice on research grant that I received a 1099-MISC form for?

Question

Can anyone give me some advice, or share their experience with research grants and taxes? I received a grant for about $20,000 to conduct archaeological excavations outside the US. Other grants I have received in the past have been managed by my university but this grant was awarded to me as an individual. I received a 1099-MISC from the granting institution with the grant amount listed in box 7 as self-employment income. I have receipts for everything I spent the grant on (all of it was related to archaeology project, and includes living expenses while abroad, lab analyses, fieldwork expenses, etc.).

I am having trouble understanding how to deduct these research expenses, because I do not run my own "business" (which is what Schedule C is for?).

Should I report the grant as "other income, line 21" and report the research expenses in "job expenses" on Schedule A?

Thanks!

Answer 1

You will have to report the 'grant' as an 'income', and you can deduct all expenses regarding the research by listing them on schedule C, that is the only way to go about this as it had been reported to the IRS as an income for you by the granting institution. And by claiming the expenses incurred, this will take care of the grant and you shouldn't be paying tax on it.

Answer 2

You should report the income and deduct the expenses on a Schedule C.
The way around this in the future is to have the payment made to a university foundation on your behalf or to form a non profit tax exempt corporation.