Haha! true! 

Yes, 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. We still believe that was an error to issue 1099-NEC. She is not in business and not independent at all, was just a 3 months thing. W-2 or 1099-MISC box 3 for her stipend payment- that's what we think would be appropriate in her case. This does not smell like 1099-NEC at all in her case. Her University issued her a W-2 for whatever she did. That's how this should have been treated as well or at least 1099-MISC box 3 "other income" for that stipend amount. I have seen so many vendors issuing 1099-NEC when they should have issued 1099- MISC box 3 due to 2020 changes not everyone seems understands yet.