1098-T Fellowship Money

[npiskuri]

Hello, 

I am a student that receives fellowship support from my university for living and other non-educational related expenses. I also get paid biweekly through my advisor which I received a W-2 for. The fellowship money is included in my 1098-T form that I received from my university, so do I have to report this money as additional income in another section, or is the 1098-T section the only part that I am required to fill out? Additionally, when TurboTax prompts the question "Are you receiving any other additional aid besides the one listed in the 1098T?," am I supposed to say yes because of the income from my advisor, or are wages treated differently than aid? Thank you! 

[AmyC]

No, additional income not on W2 or 1098, undeclared other income is what the program is looking to find. The IRS is just looking for all taxable income. The W2 handles one part and the 1098T the rest. You are good.

[npiskuri]

Thanks for your reply! I have now gotten to a box that asks, "Was any of the scholarship income not designated to pay 2020 education expenses? How much of the money received in fellowships, grants, or other aid was not designated for 2020 expenses?" Would this value just be the Box 5 (scholarships and grants) minus the box 1 (payments received for qualified tuition and related expenses) on the 1098-T form? The difference between these two numbers is the fellowship stipend money that I received just for living/food/related non-educational expenses. Does that make sense? 

[KrisD15]

No, it sounds like none of it.

There are times when the scholarship MUST be used for something other than tuition. 

It sounds like your scholarship COULD have been used completely for tuition (although it wasn't) so the answer would be "No" there were no restrictions on the scholarship. 

It is letting the program know if it can allocate the scholarship (or part of it) to the tuition, or if the scholarship is completely taxable income.