Hello @aishaliane
Thank you so much for being here today! We are so happy to have you!
According to the IRS Publications 970, stipends reported to you on a stipend letter are treated for tax purposes as taxable scholarships. Per IRS Publication 970, taxable scholarships and fellowships should be reported on the tax return as follows:
- Form 1040 – Line 1; also enter “SCH” and the taxable amount in the space to the left of line 1.
Depending on your individual tax situation, such as, if you have taxable income after your expenses, if you have federal withholding elsewhere, etc., also determines the need for Estimated Taxes. Per IRS Pub 505,
Estimated tax not required.
You don’t have to pay estimated tax for 2023 if you meet all three of the following conditions.
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You had no tax liability for 2022.
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You were a U.S. citizen or resident alien for the whole year.
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Your 2022 tax year covered a 12-month period.
But, the general rule is:
In most cases, you must pay estimated tax for 2023 if both of the following apply.
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You expect to owe at least $1,000 in tax for 2023 after subtracting your withholding and tax credits.
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You expect your withholding and tax credits to be less than the smaller of:
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90% of the tax to be shown on your 2023 tax return, or
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100% of the tax shown on your 2022 tax return. Your 2022 tax return must cover all 12 months.
As always, we do have some calculators to help you determine if you need to make estimated payments or not: TurboTax Tools & Calculators .
I hope this answers your questions, if not, please feel to respond any additional information I can add!
Cheers!
Holly W
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