Are you trying to describe "stipend" with all those quoted words?

Clearly the answer I was hoping for, but I ask myself what's the difference whether they issue Misc or NEC? An advertised requirement that the student applies for and gets the job to deliver a product. Sounds like NEC independent contractor; on the other hand if "W-2 wages" are exempted I guess that would be my answer to IRS on challenge and blame the school for not reporting on W-2.

Will go with your answer and not calculate SS/Medicare.

TY!

"but I ask myself what's the difference whether they issue Misc or NEC?" That and W2, all have differences.

Without knowing what is "deliver a product" or which type of course or degree is involved (graduate studies? field placement?), one thing that makes the difference is when the person is under a departmental program vs hired by the institution directly. For instance, a Physical Sciences department will have a budget in the chemistry department for a lab assistant. That might be for teaching assistant, providing services, a specific program of study (such as a sponsored testing study) or it can be part of a work-study program. There are stipends, grants and fellowships.

Or, the person issuing the 1099-Misc doesn't know it changed from that form box 7 to a 1099-NEC, years ago.

Not enough information to really explain it more than this. The issuer can be contacted, you know.

Thank you so much for your time and those insights.

Student is underclass ( 2nd year at Penn); not sure of his major.  Will ask his dad. He just told me it was an advertised research project the school needed, he applied and was accepted;.

Will be speaking more with Dad this evening.

"it was an advertised research project the school needed"

Seems likely to be a Fellowship. The 1040 Sched 1 doesn't really expect 1099-NEC, then.

Scholarship and Fellowship grants:

https://www.irs.gov/pub/irs-pdf/p970.pdf

https://www.irs.gov/pub/irs-pdf/p17.pdf

"Scholarships and fellowship grants are now reported on Schedule 1, line 8r."

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

Schedule 1, Line 8: "Line 8r
Scholarship and fellowship grants not reported on Form W-2. Enter the amount of scholarship and fellowship grants not reported on Form W-2. How-ever, if you were a degree candidate, include on line 8r only the amounts you used for expenses other than tuition and course-related expenses. For example, amounts used for room, board, and travel must be reported on line 8r."

One more:

https://www.irs.gov/taxtopics/tc421

"If the taxable amount wasn't reported on Form W-2, enter it on Line 8 (attach Schedule 1)"

Thank you all!  Spoke with his Dad. He's a Psychology major ( underclass) and the research project was solicited by Cognitive Sciences Department.

Going with including the income Line 8 of sch 1 with no SE taxes.