How to report a fellowship stipend?

[JohnB5677]

Unfortunately, we cannot send you an Email from this platform.  Please be specific on what you need help with on the entry screens. 

Do you have the Online version, or do you have the Desktop/CD version.  They have slightly different descriptions.

[PhdStudent85]

Hello,

Has the form changed this year? I am a fellowship recipient, and received my letter stating how much I received in my fellowship, but I also received a separate 1098-T for the tuition that I received a scholarship for (separate to my fellowship). Would I then list my fellowship under other income as you said? I did it last year and the form seemed different. Thanks for your help.

[LinaJ2020]

Since you have the scholarship that covers your tuition from the Form 1098-T, you will report your fellowship amount under Other Reportable Income.  Here are the steps:

In TurboTax online edition, 

• After sign into your account, select Pick up where you left off
• To your left, select Federal 
• Scroll down to  Less Common Income / Miscellaneous Income 1099-A, 1099-C, select Start
• Next screen, scroll all the way down to Other Reportable Income, select Start to enter information

@PhdStudent85

You receive a Form 1098-T when you paid tuition amount to your school.  When you also received a scholarship that fully covers your qualified education expenses, it is like a wash.  You do not get any tax break.  However, if your scholarship does not cover all of your education expenses, you may still claim either a credit or deduction on your tax return.  However, if your scholarship exceeds your education expenses, the difference will be treated as wages added on line 1 of your Form 1040.  If you meet certain requirements, you may qualify for an education tax break including the American Opportunity Tax Credit AOTC, Lifetime Learning Credit or Tuition & Fees deduction. To see if you qualify, here are the links: 

Qualified expenses

Deductions

Credits

To enter your Form 1098-T in the program, here are the steps:

• Sign in to your account, select Pick up where you left off
• At the right upper corner, in the search box, type in "1098t" and Enter
• Select Jump to 1098t
• Follow prompts

[quastin1945]

Hi!

So I have an NSF GRFP fellowship, but my university does not report the stipend on the W2 as wages, and I do not receive a 1098 form. Additionally, my previous W4 withholding amount was not updated after I received the fellowship, so my W2 makes it seem like I am withholding taxes without getting paid any wages — which runs into some issues when entering into Turbotax. Is there a way to potentially fix this?

Thank you!

[Irene2805]

You can report the withholding in the Estimated Payments section.

1. Click on Federal >  Deductions & Credits.
2. In the Estimates and Other Taxes Paid section, click on the Start/Update box next to Estimated Tax Payments. 
3. On the next screen, click the Start/Revisit box next to the appropriate line [Federal, State or Local] estimated taxes for 2020.

@iceit12345

[sgonz29]

Hello, I am a post doc who was switched to a T32. For 2020 taxes, I have a W2 from my previous salary through the university, but I stopped being a university "employee" and was switched to a T32 around October. As far as I could find I was not given a T1098, nor did I receive any letter with the amount of my salary for the year that came from the T32. I calculated it on my own based on my payslips/bank info.  

I just want to make sure I am understanding the steps correctly because it was a bit tricky to add myself as a student.

I input my regular W2 information under the Wages section.

Then, I input my calculated T32 income under (sorry it is long!): 

Deductions and Credits >  Education >  Expenses and Scholarships (Form 1098-T)  > Put I DID NOT receive a T1098 yet > Put that I qualify for an exception > Added school info (and said that I don't know the school ID) > Said I paid ZERO tuition > Said I was a student in a different kind of program > Said I was NOT enrolled in a certificate or credential program > DID NOT take college level classes in 2020 > DID NOT take classes for job or career > NOT enrolled in an eligible school > DID NOT go to another school > DID NOT pay for books or make payments towards an education loan > Said I DID receive a scholarship or grant in 2020 > Entered the amount I calculated from the T32 > Said my aid was NOT designated to pay 2020 education expenses > Entered the amount I calculated from the T32 again here > I DID NOT pay for room and board etc > Said I earned  4 years of college credits before 2020... and then completed the last two questions about American Opportunity/Hope Credit and Felonies

This was how I managed to add myself as a student like one of the previous posts indicated. Before this, I tried going through "Less Common Income" option but was told to upgrade. I just want to make sure that I added myself as a student correctly/ this is the appropriate way to handle this particular tax situation situation. 

[DaveF1006]

It depends. Since this is income not subject to FICA. It is income regardless on whether or not you are a student. Since you do not have a 1098-T, the only way you can enter this is as miscellaneous income in the following manner. Trying to enter the way you described can lead to confusing and the IRS does not like confusion since there was no 1098 issued.

1. Go to federal>income and expenses>all income>>show more 
2. Less Common Income> Start
3. Miscellaneous Income,>start
4. Other reportable income>start
5. Next screen asks Any Other Taxable Income>yes
6. The next screen will allow you to report the income with a brief explanation.
7. Here I would enter T32 fellowship income and the amount.

[Edited 03-07-2021|4:17 PM PST]

[0119721]

Hi, 

If I have a fellowship and receive a stipend but did not receive any forms to complete my taxes where would I include this income? @JohnB5677 

Note: I am not a candidate for a degree.

[Erinopera]

My son received a small undergraduate fellowship stipend (under $800) for research work with a mentor - no taxes withheld.  The professor received a grant for the research.  The school never sent a tax form, so my son went ahead and filed his taxes including the amount as taxable SCH income on line 1 of 1040, which is what he did the prior year.  Just yesterday, they sent him a 1099-NEC.  Is this right???  Seems they should have sent a W-2 or 1099-MISC.  He is most definitely not self-employed. Trying to figure out if he needs to file an amended return. 

[JeffreyR77]

Form 1099-NEC was issued this year replacing what has previously been issued using Form 1099-MISC box 7.   Your son has included the income on his return.  No further action is needed.  Retain the Form 1099-NEC with his tax records.

[259721]

My son is a post-doctoral fellow research associate the fellowship award payments does not send home W2 nor 1099 etc but instead they sent a end-of-year letter notifying us grossed up amount and that all or some portion of it may be taxable.  This includes stipend,  relocation & travel expenses, and health premium paid.  Should we assume all these are taxable and report the gross sum in the less common income section?  If so, can we itemize the health premium, and the relocation & travel expenses?

thanks in advance

[MarilynG1]

If your son has any Qualified Education Expenses, he could enter his Fellowship as Scholarship Income to offset these expenses.  

If not, you are correct that he could report the income as 'Other Reportable Income' in the Miscellaneous Income section.

Travel and relocation expenses are not deductible expenses since the tax law changes in 2018 (except for military), nor would they be considered qualified education expenses. 

Health Insurance Premiums are an Itemized Deduction, under Medical Expenses.

Click this link for more info on Fellowship Income. 

[adelahabib]

Hi.

In 2020 as a Ph.D. student I got a part of my stipend from my university and another part from a fellowship grant I received from an organization separate from my university. I have a W-2 from my university for part of my stipend income but I have no W-2 or 1098-T from the organization. Should I report the fellowship stipend under less common .... or under the deductions & credits?

Thanks!

[npierson7]

Graduate fellowship is taxable income and to report it in TurboTax, go to Less Common Income > Miscellaneous Income > Other Reportable Income and enter your information. 

[Mainiac5]

Hi all,

My daughter (whom we claim as a dependent)  is an undergrad who get's a 1098-T scholarship.  

She took an unpaid internship at a non-profit in 2020 and received a grant from her U that "funds" such unpaid internships.  The sent her a 1099-MISC reporting $3,400 on line 3 "other income".

I have been told by a registered agent that this should be counted as "earned income" (1040 Line 1) and thus increase the allowable portion of her standard deduction.  But I can't get Turbo Tax to process it as so.  It keeps putting it on 1040 Line 7 which does not increase her allowable standard deduction.

I went through the steps outlined above and attempted to process this in TT as "less common income, miscellaneous income 1099A, 1099C"  .......... but TT says not to do so if I received a 1099 form listing this income.

What gives?  It's as if I have to "trick" TT to get this handled correctlyu.

Any help is much appreciated?