I was not required to teach in order to get the money. I was just given a large lump sum and used it to conduct research independently for 5 months, and to live off of.
Q. The grant says it's taxed "as a scholarship, not a job."
A. OK, the main question is answered: it's classified as scholarship income.
Q. But Turbo tax seems to link all scholarships to being a student. So I don't understand where to enter it, in TurboTax.
A. You have to use a work around.
In TurboTax (TT), enter at:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
-Scroll down to:
--Education
--Education Expenses and Scholarships
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 for 2022).
The grant would be reported as Other Income on Line 8 of Schedule 1 of your tax return.
You would enter that by following these steps:
It kinda depends on who's paying you and why they are paying and who is the beneficiary of the research.
References:
https://www.irs.gov/individuals/international-taxpayers/fulbright-grants
Thanks for the links! Yeah I've read most of these---Here's what's not clear. The grant says it's taxed "as a scholarship, not a job." But Turbo tax seems to link all scholarships to being a student. I'm not a student.
So I don't understand where to post it! "Other job" seems wrong because it's not a job.
Thank you for this detailed answer.
The thing I'm confused about is that it isn't income; it's a scholarship. I wasn't required to work in exchange for the money and I'm not a student.
Q. The grant says it's taxed "as a scholarship, not a job."
A. OK, the main question is answered: it's classified as scholarship income.
Q. But Turbo tax seems to link all scholarships to being a student. So I don't understand where to enter it, in TurboTax.
A. You have to use a work around.
In TurboTax (TT), enter at:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
-Scroll down to:
--Education
--Education Expenses and Scholarships
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 for 2022).