Fellowship Income

[littlebuddytax]

Does anyone know what happened to the ability to enter taxable Fellowship income under the "Wages/Income" section?  In previous years, it was one of the last interview questions asked under Less Common Income.

I can't seem to find the question in the 2021 version of Premier.  Perhaps I'm just missing it.

I realize I can enter the information in the Education Deductions section, but this makes things more complicated.  I've already entered the 1098-T under my parent return (child attending school is a dependent).  However, the questions in the Deductions section make it hard to not enter the 1098-T again under the student (or forces you to say you didn't receive it).

Thanks for any help!

[Vanessa A]

If this income was not received as pay for services as an independent contractor, then you can enter this in the Less Common Income section by selecting the following:

• Federal
• Income
• Show More next to Less Common Income
• Start next to Miscellaneous income, 1099-A, 1099-C
• Start next to Other Taxable Income
• Enter the description and amount of your fellowship income

It depends on how this income was earned.  If it was received as pay for services as an independent contractor, then this income would be reported in the self-employment section of TurboTax Self-Employed.  

[Hal_Al]

You are correct, that question/entry point is not there anymore. 

See if this helps https://ttlc.intuit.com/community/college-education/discussion/re-nrsa-t32-fellowship-income-and-fic...  

[littlebuddytax]

Appreciate the reply, Hal_Al.  One thing I don't like about TT is they actually made updates to their 2020 version post when I filed and they removed that entry point (even though I used it to enter the Fellowship number last year!).  So it's gone when I go back into 2020 and try to review it.  Frustrating...

Moving on.  The main part that makes me uncomfortable (which was in your link) is that the dependent has to say they don't have a 1098-T (but we do, on the parent return) and this situation qualifies for an exemption (which it technically doesn't).  It just felt cleaner to do it thru Wages.

Any comment on answering the 1098-T questions that way?

Thanks again!

[Hal_Al]

 Lying to TurboTax to get it to do what you want does not constitute lying to the IRS. That info (you qualify for an exception) is not sent to the IRS. 

[littlebuddytax]

Ha!  Well said. 

It would probably be better if they asked 'do you need to enter?' instead of 'do you have one?'.

Fwiw, I tried selecting 'don't qualify for the exemption' during one iteration and think I still got to the point where I could enter the Fellowship stipend.  Not sure it even matters at this point...

[Hal_Al · Accepted solution]

Thanks for that update.  I just tried it.  You are now able to enter scholarship/fellowship with no 1098-T or exception.  Although, you do have to go thru almost the entire education interview.