@SamS1 wrote:
Try forcing it through the 1098E American Opportunity Credit screens. You will need to enter zeros for expenses and tuition except for the information about the Grants and Fellowships. Enter the amount from your 1099G there. This should push the amount to your wages line of the 1040 and hopefully get you around the IRA contribution limit errors.
If Turbotax does not yet recognize that certain fellowship income is "Earned" for purposes of IRA contributions, how will this accomplish that? Entering a fellowship in the 1098-T interview will simply add it to line 1 with the notation "SCH", that's not normally earned income, and would not be earned income if it was, for example, an undergraduate scholarship awarding tuition and room and board. The law only changes the tax treatment of Graduate Student and Postdoctoral Fellow stipends that meet certain requirements.
