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Where and how to enter Graduate Student stipend with partial W-2, no 1099-Misc and no 1099-T

My daughter is a graduate PhD student who lives and resides in PA that receives a stipend for her biology gaduate PhD program.  The stipend is funded partly by the Biomedical Graduate Studies as an Educational Fellowship for which there is no withholding, no W-2 or any documents are sent out for year end.  It is expected that federal estimated taxes are submitted to avoid underpayment penalty, for 2022 this is $25,922.  The second part is funded by 'Mentor' for which taxes are withheld and a W-2 has been recieved, for $11,544.  It has been noted that this stiped is not taxable in PA for PA state tax.  This is a graduate research program for which there is no tuition, books, etc. 

 

The W-2 information is entered as normal.  Where and how do I enter the remainder of the stipend in turbo?  

 

Also, how do I ensure that PA State tax is not calculated as it is considered exempt?

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1 Reply
Hal_Al
Level 15

Where and how to enter Graduate Student stipend with partial W-2, no 1099-Misc and no 1099-T

Q. Where and how do I enter the remainder of the stipend in turbo?  

A. After entering her 1098-T, you will be asked if there were any scholarships not shown on the 1098-T, Answer yes or  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 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 be the stipend income on line 8r of Schedule 1.

 

Q. Also, how do I ensure that PA State tax is not calculated as it is considered exempt?

 

I'm not specifically familiar with PA rules and TT software.  

That said, it appears that only certain income transfers form the federal return to the PA return and Line 8r income isn't one of them.

 

Line 10 of the PA form appears to be for "Other Deductions".  So, if the income does transfer, there's a place to deduct it. 

 

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