Income declaration

[zumbac54]

From my sister-in-law in NY:

"Most of my income last year is from a National Endowment for the Humanities fellowship. This came from the American rescue Plan. Am I to declare it? I'm confused as my other fellows say no!"

I am also confused as the IRS explanation is vague. Could someone advise?

[qbteachmt · Accepted solution]

"I am also confused as the IRS explanation is vague. Could someone advise?"

It's taxable as ordinary business income, unless you can find some legislation that exempts it.

For instance, covid grants included Shuttered venues, and that was not taxable. But performers who got covid grants have ordinary, taxable, reportable income.

[Terry53029]

See link. https://www.arts.gov/sites/default/files/lit-GTC-may2014.pdf
The Internal Revenue Service (IRS) considers NEA grants to individuals as taxable income. The NEA
does not withhold Social Security, State, or Federal income taxes from your award and we do not send
out 1099 or other tax forms.