Education

KathrynG3 · ‎March 28, 2020

Based on @Hal_Al and @Bsch4477 's insights, I have edited my answer accordingly:

First, regarding your W-2, it is not reportable and does not need to be included in your return, as Bsch4477 stated.

Second, regarding your fellowship:

Enter Form 1098-T exactly as received. After posting, TurboTax will ask for additional details.

The next screen will ask: Did Taxpayer's Aid Include Amounts Not Awarded for 2019 Expenses?
- This is for costs paid in one year for a school term in a different year.
Did Taxpayer Pay for Room and Board with a Scholarship or Grant?
- This refers to living expenses.
  - Answer Yes, entering the excess amount received over tuition.

For any excess stipend over the amount of tuition, if Form 1098-T was not received, enter in TurboTax following these steps:

From the left menu, select Federal
Wages & Income scroll all the way down to Less Common Income and click Show More
Select the last listed option for Miscellaneous Income 1099-A, 1099-C, click Start
Next, select the last listed option Other Reportable Income
Did you receive any other taxable income, click Yes
Other Taxable Income: Enter your description and the amount and click Continue and Done.

Click the links for more details:

and also, see page 89: Scholarships and fellowship grants.

Expenses for tuition and fees required to enroll at or attend an eligible educational institution, and
course-related expenses, such as
- fees,
- books,
- supplies, and
- equipment

that are required for the courses at the eligible educational institution.

Course-related items must be required of all students in the course of instruction.

Student Exception to Social Security and Medicare Taxes: explains why your fellowship is not subject to self-employment tax. Therefore, it must be reported as less common income.

Congratulations on your fellowship and PhD work!

[Edited 3/28/2020 | 3:58 PM PST]