Predoctoral NIH NRSA grant stipend

Forum|Forum|7 years ago
June 1, 2019
1 reply
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I'm a US citizen and receive a stipend as part of an NIH NRSA predoctoral training program. Per IRS guidance, my stipend is not considered wages, and I do not receive either a W-2 or a 1099-MISC from my university. Please advise on two questions: (1) do I need to report this as imputed income on my 1040? And (2) how do I enter this into TurboTax? I'm currently using the Deluxe edition. Thanks!

TurboTax Premier Online

ChristinaS

Level 10

The NIH NRSA grant stipend is taxable income, but is not subject to payroll tax. As such, it is neither reported on Form W2 nor as a 1099-MISC. This income is treated in the same fashion as scholarship income in excess of tuition. It flows to Line 7 of your 1040 as wages, with the notation "SCH". By entering the grant within the Education section of Turbo Tax, the program will automatically carry the amount above your tuition and related expenses to the line 7.

Any scholarship, fellowship or grant income not on a W2 or 1099 is reported in the Education Section:

Federal Taxes- Deductions and Credits-Education

If you've already been here to enter your 1098-T, but didn't enter the grant that was not on your 1098-T, edit where it says Here's Your Education Summary. Edit again next to Scholarships and Grants. Enter the amount as Other Scholarships/ Grants/ Fellowships.

https://www.irs.gov/pub/irs-wd/0226005.pdf

From link above:

The recipient of a scholarship or fellowship grant is responsible for determining whether such grant is, in whole or in part, includible in gross income for federal income tax purposes. Where participants are degree candidates, such grants will ordinarily be excludable from the recipients’ gross incomes to the extent of their qualified tuition and related expenses.