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,
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
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
Select Deductions & Credits, and in the new screen, click on I'll choose what I work on.
the Education screen .
the Start/Update button
next to the Expenses and Scholarships (Form 1098-T) category.
prompts (there will several questions to complete before arriving at the
section to report your fellowship)
arrive at the section "Did You Receive a Scholarship or Grant in