Do I need to/how can I report stipends and income paid for a study abroad program?

[nina8705]

I participated in an exchange program to Japan for 5 months in 2019. While I was there, I was given a stipend each month for living costs. I also earned some amount of money for tutoring for the University I studied at. I was not provided with documentation for any of this, and I'm not sure what the exact amounts were. All of this money was earned and spent in Japan, so I'm not even sure if I have to report it.

I also used a loan from Sallie Mae to help cover living, travel, passport, and other necessary costs related to the trip, and I don't know if I need to report that money.

I'm using H&R Block's free file and their form 2555 for foreign earned income does not allow me to access parts IV and further. It seems like this form is used for deductions, but I'm not trying to deduct this money. I just need to report it. Or do I even need to report it? 

[LinaJ2020 · Accepted solution]

Yes, you would have to report your stipend.  While not reported on a W-2 or 1099, the stipend would still count as income on your tax return. You would just enter it slightly differently.  Here are the steps:

In TurboTax online edition, 

1.  After sign into your account, select Pick up where you left off

2.  To your left, select Federal 

3.  Scroll down to  Less Common Income / Miscellaneous Income 1099-A, 1099-C, select Start

3.  Next screen, scroll all the way down to Other Reportable Income, select Start to enter information

If you have earned income doing tutoring, you would have to report it as a foreign earned income.  Here are the steps to enter info:

• At the right upper corner, in the search box, type in foreign income and Enter 
• Select Jump to foreign income 
• Next screen, Did You Make Any Money Outside the United States? answer Yes 
• Follow prompts

As far as the loan, if it is a qualified student loan, you may claim a deduction on the interest you pay.  To see the definition, click here Student Loan ( page 32)

[nina8705]

You're a lifesaver. Thank you so much! I was so worried about reporting it wrong and getting in trouble. 😢

[LinaJ2020]

You are very welcome!