How do I handle my Fulbright Stipend as a researcher/teacher

[lbonawitz]

How do I handle my Fulbright Stipend as a researcher/teacher

[OpeA1]

Hello lbonawitz!

The institution will issue you a tax form (1098-T). If they issue you this for the stipend, all you need to do is enter the information into Turbotax when you are using TurboTax to prepare your taxes and the system will take care of the calculations for you.

Best,

OpeA1

[lbonawitz]

I have read that there are different means testing on whether the stipend is taxed or not.  Can you expand on this matter for research and teaching?

[OpeA1]

Only the institution will be able to tell you how they will report the stipend. You will have to check with the Human Resources at your institution.

[lbonawitz]

Perhaps you could expand on another bit of this Fulbright.  Is any of the logistics: Visas, travel, accommodations, supplies, etc. deductible?  Will turbotax account for deductible items related to the appointment?

[lbonawitz]

Why didn't you answer this question yesterday?

Perhaps you could expand on another bit of this Fulbright.  Is any of the logistics: Visas, travel, accommodations, supplies, etc. deductible?  Will turbotax account for deductible items related to the appointment?

[Hal_Al]

Fulbright Grants are usually taxable income. See:

https://ttlc.intuit.com/questions/3091932-is-a-fulbright-teaching-grant-to-a-foreign-country-that-pa...

https://www.irs.gov/individuals/international-taxpayers/fulbright-grants

The next question is: is it subject to SE tax, as well as income tax? How was the income reported to you (1098-T, 1099-Misc, 1099-NEC etc)? If 1099-Misc, what box #? What did yo do for or with this money?

Basically,  if you were paid for your work, it is also subject toSelf employment (SE) tax. But, it also depends on who benefits. If this is you own personal research project, it s treated as taxable scholarship ("other income". If it has commercial applications, it's self employment income.

If you report it as self employment (Schedule C), then all your expenses are deductible.

[lbonawitz]

You mention they will issue a 1098-T, the institution is not issuing and tax forms of any kind.

How do we handle this?

[Hal_Al]

After answering no to having a 1098-T, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational  expenses".  So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1 (this line is new for 2022-3).