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My son is a graduate student who gets paid a fellowship from the university. They did not provide any tax documents (no W2 or 1099). I only have his last paycheck stub.
His fellowship is in excess of tuition and housing.
Paystub lists 3 quantities:
-Fellowship stipend
-Tuition support
-Housing as an After Tax Deduction
How should this be reported in TurboTax? I've seen a variety of different answers/explanations ranging from Other Income or in Credits/Deductions. Which is the correct method and which quantity (or combination) is reported?
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1. It is reported different ways, usually because different forms can be received. Since you have no form, the simplest solution is straight forward with an explanation.
Follow these steps to enter the income:
2. Generally, fellowship income not used for education expenses - like tuition and fees, is taxable. Expenses like room and board, are taxable. There may be deductible expenses with a fellowship, such as research costs or other necessary expenses to fulfill the fellowship requirement. Your son needs to determine the required expenses. If he had to hire a research team, that would be subtracted from his taxable income.
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