Hi,I am an F-1 student and currently considered a resident for tax purposes. I received a fellowship stipend from my university, which was paid as a scholarship or fellowship grant. Due to a temporary issue with my Glacier account, I was treated as a nonresident alien for withholding purposes for a short period. As a result, I received a Form 1042-S (income code 16, scholarship or fellowship), showing the income and federal tax withheld.I also received a Form 1098-T from the university, and I want to ensure that I report everything correctly without double counting or misclassifying the income.I would appreciate your guidance on the following:Is the amount reported on Form 1042-S already included in Box 5 (scholarships and grants) of Form 1098-T, or is it separate stipend income?As a resident for tax purposes, should this income be treated as a taxable scholarship or fellowship stipend?What is the correct way to report this in TurboTax? Should it be entered under the 1098-T scholarship section or separately as other income?How should I claim the federal tax withheld as reported on Form 1042-S?Is any additional adjustment or documentation required given the temporary nonresident withholding treatment?Thank you for your time and assistance.

Here are the answers to your questions. 1. Is the 1042‑S amount already included in Box 5 of the 1098‑T?Usually yes — but not always. Most universities include all scholarships/fellowships paid through the student account in Box 5. However, stipend-type fellowship payments (paid through payroll or accounts payable) are often NOT included in Box 5. To know for sure, check: If the 1042‑S amount matches or is part of Box 5 → it’s included If Box 5 is much smaller than the 1042‑S amount → it’s separate stipend income Universities differ, so the safest approach is to compare the numbers.2. How is this income treated?As a Resident Alien, your fellowship is treated under the same rules as a U.S. citizen: Tax-Free: The portion used for "qualified education expenses" (tuition, required fees, books, and equipment required for courses). Taxable: The portion used for "non-qualified expenses" (room and board, travel, and general living stipends)3. How to report this in TurboTax (the correct method)TurboTax handles this cleanly if you follow the right path. If the 1042‑S amount is included in Box 5 of the 1098‑TYou should: Enter the 1098‑T normally When TurboTax asks about additional scholarships or fellowship income not on the 1098‑T, enter $0 TurboTax will calculate taxable scholarship automaticallyIf the 1042‑S amount is not included in Box 5You should: Enter the 1098‑T normally When TurboTax asks: “Did you receive any scholarships or grants not reported on the 1098‑T?” → Enter the 1042‑S amount there TurboTax will treat it as taxable scholarship/fellowship income Do not enter this as other income4. How to claim the federal tax withheld on the 1042‑S Go to Federal → Wages & Income Scroll to Miscellaneous Income Find “Other income taxes paid” or “Foreign tax withheld / 1042‑S withholding” Enter the federal tax withheld from the 1042‑STurboTax will treat it like any other federal withholding and apply it to your refund/balance due. 5. Do you need extra documentation because of the temporary nonresident withholding?Generally no. The IRS sees this all the time with F‑1 students transitioning to resident status. But you should keep these just in case if the IRS has questions. The 1042‑S Your residency determination (e.g., Substantial Presence Test result) Any university correspondence about Glacier issues

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ironphoenix

Level 2

Question

Clarification on Reporting 1042-S Fellowship Income and 1098-T as a resident for tax purposes

Forum|Forum|2 months ago
April 14, 2026
1 reply
638 views

Hi,

I am an F-1 student and currently considered a resident for tax purposes. I received a fellowship stipend from my university, which was paid as a scholarship or fellowship grant. Due to a temporary issue with my Glacier account, I was treated as a nonresident alien for withholding purposes for a short period. As a result, I received a Form 1042-S (income code 16, scholarship or fellowship), showing the income and federal tax withheld.

I also received a Form 1098-T from the university, and I want to ensure that I report everything correctly without double counting or misclassifying the income.

I would appreciate your guidance on the following:

Is the amount reported on Form 1042-S already included in Box 5 (scholarships and grants) of Form 1098-T, or is it separate stipend income?
As a resident for tax purposes, should this income be treated as a taxable scholarship or fellowship stipend?
What is the correct way to report this in TurboTax? Should it be entered under the 1098-T scholarship section or separately as other income?
How should I claim the federal tax withheld as reported on Form 1042-S?
Is any additional adjustment or documentation required given the temporary nonresident withholding treatment?

Thank you for your time and assistance.

DaveF1006

Level 15

Here are the answers to your questions.

1. Is the 1042‑S amount already included in Box 5 of the 1098‑T?

Usually yes — but not always. Most universities include all scholarships/fellowships paid through the student account in Box 5. However, stipend-type fellowship payments (paid through payroll or accounts payable) are often NOT included in Box 5. To know for sure, check:

If the 1042‑S amount matches or is part of Box 5 → it’s included
If Box 5 is much smaller than the 1042‑S amount → it’s separate stipend income
Universities differ, so the safest approach is to compare the numbers.

2. How is this income treated?

As a Resident Alien, your fellowship is treated under the same rules as a U.S. citizen:

Tax-Free: The portion used for "qualified education expenses" (tuition, required fees, books, and equipment required for courses).
Taxable: The portion used for "non-qualified expenses" (room and board, travel, and general living stipends)

3. How to report this in TurboTax (the correct method)

TurboTax handles this cleanly if you follow the right path.

If the 1042‑S amount is included in Box 5 of the 1098‑T

You should:

Enter the 1098‑T normally
When TurboTax asks about additional scholarships or fellowship income not on the 1098‑T, enter $0
TurboTax will calculate taxable scholarship automatically

If the 1042‑S amount is not included in Box 5

You should:

Enter the 1098‑T normally
When TurboTax asks: “Did you receive any scholarships or grants not reported on the 1098‑T?” → Enter the 1042‑S amount there
TurboTax will treat it as taxable scholarship/fellowship income
Do not enter this as other income

4. How to claim the federal tax withheld on the 1042‑S

Go to Federal → Wages & Income
Scroll to Miscellaneous Income
Find “Other income taxes paid” or “Foreign tax withheld / 1042‑S withholding”
Enter the federal tax withheld from the 1042‑S

TurboTax will treat it like any other federal withholding and apply it to your refund/balance due.

5. Do you need extra documentation because of the temporary nonresident withholding?

Generally no. The IRS sees this all the time with F‑1 students transitioning to resident status.

But you should keep these just in case if the IRS has questions.

The 1042‑S
Your residency determination (e.g., Substantial Presence Test result)
Any university correspondence about Glacier issues

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ironphoenixAuthor

Level 2

Thank you for the response. Yes, the amount on Box 5 of the 1098T is higher than the 1042-S form. I reported the same on TurboTax as well. However, I am unable to find the option for response 4 - Miscellaneous Income - Other income taxes paid or Foreign tax withheld / 1042-S withholding.