SusanY1
Expert Alumni

Deductions & credits

Income earned anywhere in the world is potentially taxable for U.S. citizens and resident aliens, even if it is not taxable in the country where it is paid.  

 

Fellowships and scholarships are not considered wages or earned income, and as such, are not excludable under the Foreign Earned Income Exclusion on the U.S. tax return. 

 

Your fellowship is only taxable to the extent that it exceeds your education expenses or if you are not a candidate for a degree.

 

We have an excellent article about scholarship income here:  Scholarship Income.

 

Scholarship income is entered in the Education Expense section of TurboTax since only the amount that exceeds your expenses (if any) is what would be taxable. 

 

 

 

 

 

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