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Retirement tax questions
Thanks. I have learned that the IRS has given consideration to treating postdoc fellowship stipend as income rather than as a grant. As income one can contribute to IRA; as grant one cannot. I am going to try to get rid of the amount reported as grant on the 1099G and instead report the income as income on line 1 of 1040. The problem is that the IRS will receive the 1099G but will not receive a W2 for the earnings. In both cases the income/grant money is taxable so they should not care.
I don't think I am allowed to prepare a W2 form to show the earnings from th payer which is a research institute where I am a post doc fellow receiving an annual government grant as my only income.
Do you have thoughts about this? Thank you for your ideas.