OK. My MSU Grad student son, living in East Lansing and working at MSU, has both a W2 and fellowship/scholarship income (SCH on line 1 of federal 1040) from MSU. On MSU's W2, they withheld East Lansing city tax correctly, but obviously not on the scholarship money which comes via 1098T (scholarship in excess of tuition).
Is he liable for East Lansing City tax on the scholarship/fellowship SCH money, since it's not "earnings" and has no W2, but is income? Or can he exclude it on the East Lansing city income tax form?
Thanks for any help or advice from those who've gone before. There have to be zillions of MSU students and parents who've been through this.
