You would enter your stipend as "Other Income" in TurboTax. A stipend is not considered to be wages or earned income.
If your stipend is used for qualified education expenses — such as tuition, books, or fees — it may be tax-free.. However, if the funds are used for non-qualified expenses, such as rent, travel, or food, the stipend amount allocated to these purposes is considered taxable income.
You will enter your "Other Income" in TurboTax using the instructions below.
If you are using TurboTax Desktop, you will:
- Click on the "Wages & Income" tab in the gray bar near the top of your screen.
- Select "I'll Choose What to Work On"
- Scroll down to "Less Common Income"
- Select "Start or Update" next to Miscellaneous Income"
- Scroll down to "Other Reportable Income"
- Select "Start or Update"
- Your screen will say "Other Wages Received"
- Enter your income on the page that says "Other Taxable Income"
- Select "Continue"
- Answer all of the follow-up screens.
You can do this as follows using TurboTax Online:
- Click on "Pick up where you left off"
- Click on "Wages & Income" in the left panel
- Click on "Less Common Income"
- Scroll down to "Miscellaneous Income"
- Scroll Down to "Other Reportable Income"
- Click on "Start"
- Follow the screens and answer all follow-up questions
A Form W-9 is used to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS. If you completed a Form W-9 for the issuer of your stipend, you should ask them if they issued a Form 1099-Misc to report it. A stipend is usually reported on a Form 1099-Misc or Form W-2. Make sure it is not included on your Form W-2.
Click here for "Form W-9 - What Is It and How Is It Used?"
Click here for Publication 525 (2024), Taxable and Nontaxable Income.
Click here for "Topic no. 421, Scholarships, fellowship grants, and other grants"
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