Graduate student Fellowship award

[17729963761]

Hello,

Where/ how in TT to report Felowship stipend  for graduate student.  The university was not sending out w2 or any form  as it considered an award, not pay. 

[Hal_Al · Accepted solution]

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section). Answer yes to having education expenses and working on a degree, even if you’re not. That’s needed to get to the scholarship entry screen. Check received scholarship, grant or aid at the Did you have any of these common situations screen. 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. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1.

Fellowships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.

If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.

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.

[MindyB]

You can enter this in the Education section.  In TurboTax Online:

• Navigate to Federal > Deductions & Credits > Education > Expenses and Scholarships (Form 1098‑T). 
• Check the box Received a scholarship, grant or other aid on the screen Did you have any of these common situations in 2025?
• Continue through the interview, answering the questions and input information from the 1098-T, if you have one. 
• Continue and enter the other education expenses like books and materials.
• Continue and you will see the screen Add any other financial aid. Here, you can enter the stipend as "Other scholarships, grants, or fellowships"
• Continue and answer the rest of the interview questions.

TurboTax will treat any amount exceeding qualified expenses as taxable scholarship income.

Note, if you are not required to file a return, this may not be necessary. See the current filing requirements here: Who must file