1099-MISC and Tuition Fellowship
Hello,

I received a fellowship from my undergraduate institution to pay for graduate school, and I used this fellowship to pay for tuition expenses. By my understanding of Publication 970, this fellowship should not be taxed because it was used for tuition only, and because I did not work for the fellowship (Also note I am a U.S. citizen).

However, I received a 1099-MISC form with the fellowship reported in box #3 ("Other Income).

I believe that this might have been a filing mistake, as publication "Instructions for Form 1099-MISC" (http://www.irs.gov/pub/irs-pdf/i1099msc.pdf) states that "Do not use Form 1099-MISC to report
scholarship or fellowship grants.... Other taxable scholarship or fellowship payments (to a degree or nondegree candidate) are not required to be reported by you to the IRS on any form."

I have three questions:
1) Am I correct in believing this fellowship should not be taxed?
2) Should I contact my undergraduate institution to ask them to refile the 1099-MISC form? If so, how might I make my case that they mis-filed it?
3) If the form is filed correctly, how should I report the fellowship on my 1040 forms so that it is not taxed (Turbotax was no help here).

Thank you very much for your help.