Hello,
What a PhD student gets grants/scholarship and they get only 1098T where they get paid more (box5) than the tuition and fees (box1). They have to show the difference as taxable income. And they are assessed to pay taxes after standard deduction which can be few thousand in taxes. There is no W2, only 1098T.
They are paying taxes, can they not save in IRA or RothIRA? If they contribute, will that be considered as excess contribution and pay penalty? Can you please clarify?
Thanks,
tapank
