How do I report fellowship grants received as a post-doctoral scholar?

[MarilynG1]

A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Any amount of scholarship or fellowship that is greater than your education expenses is taxable.

If you have offsetting education expenses enter the scholarship or grant  as part of your education expenses in that section of TurboTax. 

-Select Federal Taxes
-Select Deductions and Credits
-Select Start or Update at Expenses and Scholarships (Form 1098T)

If you are not a candidate for a degree, or if you do not have offsetting education expenses, the fellowship should be reported as less common income.  If you had expenses, but the income exceeds them, TurboTax will automatically include the balance as taxable income, on Schedule 1, as 'scholarship and fellowship grants not reported on W-2'.

@simarsingh25 

[Edited 04/07/2025 | 9:21 am]

[Hal_Al]

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).

After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship 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. 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).

*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.  

As suggested at the other reply, it can be entered as "other income".  But, then it is treated as unearned income. 

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $14,600 filing requirement (2024) 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.

Taxable scholarship goes on line 8r of Schedule 1, from which TT treats it as hybrid income.