I have a non reported tax fellowship stipend that is given for living expenses, travel and continuing education, where do I enter this? I have no forms sent to me.

[enpaine]

I have a fellowship through ORISE and we do not go to class but "work" at the Wellness center on an U.S. Army base. How do I enter this information in?

[IsabellaG · Accepted solution]

You should report your fellowship as follows: 

• 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.

[Strgbn]

thank you for details related to entering fellowship income.

Can I deduct the living expenses the fellowship was intended for?  This was a 1 yr fellowship which went into 2019 (Jan - Aug), past the calendar year that she was enrolled in higher education (graduated May 2018) and therefore not enrolled in higher education program in the 2019 portion.

Moved into W-2 federal employment at end of fellowship.

[KrisD15]

If a scholarship is used for living expenses, it is taxable. 

Only when a scholarship is used to pay tuition and fees might it be non-taxable, HOWEVER:

According to the IRS:

 "Payment for services. Generally, you can't exclude from your gross income the part of any scholarship or fellowship grant that represents payment for teaching, research, or other services required as a condition for receiving the scholarship. This applies even if all candidates for a degree must perform the services to receive the degree. However, see Exceptions next.

Exceptions. You don't have to treat as payment for services the part of any scholarship or fellowship grant that represents payment for teaching, research, or other services if you receive the amount under:

• The National Health Service Corps Scholarship Program,

• The Armed Forces Health Professions Scholarship and Financial Assistance Program, or

• A comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in that section)."

Read more in IRS Pub 970

[gregleach_1]

I am in this same situation. When I file like this my State return when it asks if I was "employed, retired, or none", only gives me the option to select retired or none even though I was employed.

[MarilynG1]

How did you report your fellowship income?

If you reported your fellowship income as Taxable Scholarship in the Education section, this does not indicate employment.

If you reported it (or part of if) as Other Reportable Income, your state may not recognize this as 'wages' necessarily, since you didn't have Social Security or Medicare tax withheld. 

It should not affect your state return if you choose 'None'.

Click this link for more info on Reporting Internship/Fellowship Income. 

[MG808]

This is extremely helpful, thank you!

[Hal_Al]

Enter scholarship. Enter stipend

 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 is new in 2022).

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, where TT treats it as hybrid. 

*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.