According to the IRS, Fullbright Grants may be taxable if it is compensation for personal services, which is usually considered wages.
If your grant is considered to be compensation, here is how to report it:
- Go to Federal Taxes> Wages and Income
- Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice)
- Choose Other income not already reported on a Form W-2 or Form 1099
- Answer Yes on the Other Wages Received screen
- Continue past Wages Earned as a Household Employee and Sick or Disability Pay
- Answer Yes on the Any Other Earned Income screen
- Choose Other on the Enter Source of Other Earned Income screen
- Enter your fellowship information on the Any Other Earned Income screen.
This will report your fellowship on line 7 of your Form 1040, and you will not be subject to Self Employment Tax.
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