2025 PhD Stipend as earned income

retired_ccie · ‎March 06, 2026

I am trying to follow a similar path as previous years to enter a PhD stipend so it shows as earned income allowing for Roth IRA contributions. In previous years, I have followed the 1098-T path with success. However, this year, after following this path I still show an excess Roth IRA contribution and associated tax. Any ideas?

UPDATE: I was able to fix this by going to the forms view and manually updating field 16b2 on the Earned Inc Wks. I am not sure why the interview process didn't update this (I guess I didn't enter a field correctly).

Hal_Al

The Education Expenses and Scholarships section (1098-T) is still the place to enter taxable PhD stipends. It has changed a little this year, but you are still able to enter scholarship amounts.

At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line was added in 2022).

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.

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Hal_Al

The Education Expenses and Scholarships section (1098-T) is still the place to enter taxable PhD stipends. It has changed a little this year, but you are still able to enter scholarship amounts.

At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line was added in 2022).

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450). It is not earned income for the kiddie tax and other purposes (e.g. EIC). For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.