US Graduate Student on Foreign Fellowship

[mlm22]

I am an American doctoral student and received a 10 month research fellowship from a German organization which began in October 2021. My fellowship is not taxable in Germany, but is my stipend taxable in the US? And how would I report this fellowship on my taxes? Would this stipend be considered foreign income?

I am a US citizen but have a residence permit in Germany for the 10 months of my research stay. I am also still enrolled in an American university. Does this residence permit allow me to claim part-year residency in the state I lived in before coming to Germany? Or am I still considered a resident of that state since I will only be gone for 10 months and still have an address there, which I will be using for my taxes? I have not received income in that state since May 2021.

[DaveF1006]

To clarify, did you receive the stipend before going to Germany?

[mlm22]

No, I receive the stipend in monthly installments and I only received my first one after I arrived in Germany and set up a German bank account.

[DaveF1006]

Just to clarify further, is the stipend and fellowship income you are receiving one of the same thing?

@mlm22

[mlm22]

Yes, sorry. The only money I have received from the fellowship is this monthly stipend.

[DaveF1006]

OK now I am ready to answer. Here is how to report.

1. Open your return in TurboTax 
2. Click on Wages & Income 
3. Scroll down to All Income 
4. Scroll down to Less Common Income 
5. Scroll down to Miscellaneous Income, 1099-A, 1099-C 
6. Click start 
7. Scroll down to Other reportable income 
8. Answer yes 
9. Enter description and amount 

As far as the state, it depends what state you live in since each state has it's own tax code.

@mlm22  

[mlm22]

Okay, thank you for your help! So just to confirm the stipend is taxable income even though it is provided by a foreign organization?

[DaveF1006]

Yes, stipends are taxable no matter where earned.