I am a graduate student and for half of 2016, our stipend was $24,500. In August I was awarded a fellowship that paid $27,500. How do I input this information accurately?

[aszybura]

No 1098T form. Taxable fellowship.

[GeoffreyG]

To the extent that your University stipend(s) and fellowship awards are not used to pay for actual tuition fees or textbooks, they constitute taxable income, and thus do need to be reported on your tax return.  The good news is that, while your stipend and / or fellowship income is taxable as ordinary income, at least you do not have to pay Social Security and Medicare taxes on it, as you would if the income were alternatively taxed as ordinary W-2 wages.  Please allow us to explain this, and how to include it on your tax return. 

Academic institutions, research facilities, and certain government agencies will often report fellowship (or stipend) income in various or nonstandard ways, especially at the graduate and postdoctoral levels.  It's certainly not an uncommon occurrence; but yes, it is definitely considered taxable compensation.  As such, you do (legally) need to declare it and report the information on your income tax return.

This can be accomplished in the TurboTax program, both in the online (web-based) software as well as in the desktop versions of the program.

The mechanical steps to do so are outlined at the following AnswerXchange post from a few years ago:

https://ttlc.intuit.com/questions/2638576-how-to-report-a-fellowship-stipend

Those general processes remain accurate for the current (2016) tax year of the TurboTax program (i.e., either of those described will work just the same).

Both as a test of this, and as demonstrable proof for this answer, I ran a (hypothetical) academic fellowship of $3,000 through the federal tax program.  In fact, I did it in both of the ways described on that other post, and the results came out just as expected, without any errors present.  (Please see the attached screen-capture image below for a visual aid; simply click to open.)  As desired, the notation "SCH" appeared on Line 7 of Form 1040, and the $3,000 test amount was added to taxable wages.

I have full confidence that this method will work for your tax return, too.  Just substitute the actual fellowship income total you have (subtracting out any dollar amount that was used directly for tuition or textbooks, if any) for the $3,000 used in this demonstration example. 

Thank you for asking this important question, and good luck with your graduate studies.