According to the IRS, Fullbright
Grants may be taxable if it is compensation
for personal services, which is usually considered wages.
If your grant is considered to be compensation, here is how to report it:
- Go to
Federal Taxes> Wages and Income
- Scroll to
the Less Common Income section and choose Miscellaneous Income (the last choice)
- Choose Other income not already reported on a Form W-2 or Form 1099
- Answer
Yes on the Other Wages Received screen
- Continue
past Wages Earned as a Household Employee and Sick or Disability Pay
- Answer Yes on the Any Other Earned Income screen
- Choose Other on the Enter Source of Other Earned Income
screen
-
Enter your fellowship information on the Any Other Earned Income screen.
This will report your
fellowship on line 7 of your Form 1040, and you will not be subject to Self
Employment Tax.
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