As an F-1 student classified as a resident alien, I worked last year as both a research and a teaching assistant. My 1098-T form shows that my school included the cost of my health insurance in Box 5 as part of my scholarship/grant. This inclusion made the amount in Box 5 exceed the amount in Box 1 by the cost of the health insurance paid by the school. Initially, I was confused because it appeared I had to pay additional tax on money I never actually received.
However, I recently realized that this additional tax may have already been covered by my school last year through a direct deposit. I received a 1042-S form showing a few hundred dollars in Box 2 (Box 1 income code: 16; Box 3a exemption code: 04; Box 4a exemption code: 16). Should I regard it as a taxable income?
I am unsure how to report this on my 1042-S form in TurboTax given my situation.
