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Is a Fulbright teaching Grant to a foreign country that pays per diem expenses taxable?

 
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IsabellaG
Employee Tax Expert

Is a Fulbright teaching Grant to a foreign country that pays per diem expenses taxable?

Yes, the IRS has said, in referring to Fullbright grants, that "amounts paid to United States citizens for lecturing or teaching abroad are not paid to enable the recipients to pursue studies or research but are compensation for services rendered and are includible in their gross incomes under section 61 of the Code."

You would report this income in TurboTax, like this:

  • Go to Federal Taxes>   Wages and Income
  • Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice) 
  • Choose Other income not already reported on a Form W-2 or Form 1099
  •  Answer Yes on the Other Wages Received screen
  • Continue past Wages Earned as a Household Employee and Sick or Disability Pay
  •  Answer Yes on the Any Other Earned Income screen
  •  Choose Other on the Enter Source of Other Earned Income screen
  •   Enter your fellowship information on the Any Other Earned Income screen.

This will report your fellowship on line 7 of your Form 1040, and you will not be subject to Self Employment Tax.

 

https://www.irs.gov/Individuals/International-Taxpayers/Fulbright-Grants

http://eca.state.gov/files/bureau/fulbright_grants_and_us_income_taxes.pdf

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2 Replies
IsabellaG
Employee Tax Expert

Is a Fulbright teaching Grant to a foreign country that pays per diem expenses taxable?

Yes, the IRS has said, in referring to Fullbright grants, that "amounts paid to United States citizens for lecturing or teaching abroad are not paid to enable the recipients to pursue studies or research but are compensation for services rendered and are includible in their gross incomes under section 61 of the Code."

You would report this income in TurboTax, like this:

  • Go to Federal Taxes>   Wages and Income
  • Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice) 
  • Choose Other income not already reported on a Form W-2 or Form 1099
  •  Answer Yes on the Other Wages Received screen
  • Continue past Wages Earned as a Household Employee and Sick or Disability Pay
  •  Answer Yes on the Any Other Earned Income screen
  •  Choose Other on the Enter Source of Other Earned Income screen
  •   Enter your fellowship information on the Any Other Earned Income screen.

This will report your fellowship on line 7 of your Form 1040, and you will not be subject to Self Employment Tax.

 

https://www.irs.gov/Individuals/International-Taxpayers/Fulbright-Grants

http://eca.state.gov/files/bureau/fulbright_grants_and_us_income_taxes.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Hal_Al
Level 15

Is a Fulbright teaching Grant to a foreign country that pays per diem expenses taxable?

It goes on line 1 of form 1040 (instead of line 7) starting in tax year 2018.

 

Starting in 2022, taxable scholarship  goes on line 8r of Schedule 1. The SCH notation is no longer used. 

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