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Should a full time graduate student consider his stipend as income?

 
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Should a full time graduate student consider his stipend as income?

If your stipend is education related, then you will need to determine if your stipend is taxable.

Non-Taxable Fellowship - A fellowship payment received by a candidate for a degree, also called a “scholarship” payment by the IRS, is not taxable income to the student if it is used only for tuition and required fees and/or course related expenses, such as fees, books, supplies and equipment that are required of all students enrolled in courses. These payments are not taxable income to the student.

Taxable Fellowship – A payment, typically known as a "stipend", used for living and incidental expenses such as room and board, travel, equipment, i.e. computer or other expenses that are not required of all students enrolled in courses. These payments are taxable income to the student.

How To Report

  1. Select Federal Taxes (Personal in the Home & Business edition).
    In Online TurboTax, click the bars at the upper left corner to show 
    Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
  2. Select Deductions & Credits, and in the new screen, click on I'll choose what I work on.
  3. Scroll down the Education screen .
  4. Click on the Start/Update button next to the Expenses and Scholarships (Form 1098-T) category.
  5. Click Update
  6. Follow the prompts (there will several questions to complete before arriving at the section to report your fellowship)
  7. When you arrive at the section "Did You Receive a Scholarship or Grant in 2017?"
  8. Select Yes and follow the prompts

Please review IRS publication 970, Tax Benefits for Education for additional information - www.irs.gov/pub/irs-pdf/p970.pdf