"Nope. The Box 7 of the 1099-Misc is now the (resurrected) 1099-NEC"

Seems, you aren't quite understanding what we are talking about again. 🙂 As of 2020 - 1099-MISC is no longer used to report nonemployee compensation in box 7. Nonemployee compensation is reported using 1099-NEC box 1 ONLY. But the 1099-MISC is still around and used to report miscellaneous income such as rent, payments to an attorney, AND stipend payments as well in Box 3 of 1099 -MISC, etc. There is no Box 7 for contractors in 1099- MISC any longer, so obviously that is not what are discussing here.

Again, I am agreeing with other tax professionals I talked to and ones in this thread as well that she should have been issued a W-2. ( She is not in business or independent). Or 1099 - MISC if it was NOT considered for services according to the Zoo. (There is Box 3 "other income" in 1099-MISC, so obviously that is that we are talking about). We do not know if the Zoo made a mistake by treating her stipend payments as payments to an independent contractor and issuing 1099-NEC ( we think that they did) instead of 1099-MISC box 3. It is also our assumption that she "provided services", she does not know, she said that she was doing research, and the stipend was to cover food and housing. We are assuming that "doing research" was providing services. I've seen many vendors made mistakes by issuing 1099-NEC but it should be 1099-MISC box 3 due to the 2020 changes that not everyone understands yet. 

We are filing a Schedule C and deducting expense even though she is not in business and should not be filing a Schedule C. But we are going that route due to the 1099-NEC issued ( which means the IRS system most likely will be looking for a Schedule C) instead of trying to resolve this with the Zoo. 

Have a good night!