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mjohns47
New Member

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

I worked one fellowship from Jan to Aug and received a monthly stipend (no W2).

Moved to a new state 

Started a new fellowship from Sept to Dec which payed in a stipend as well (no W2)

How do I enter this? Is the entire sum going to be taxed fully in both states? None of these payments where towards getting a degree.

1 Best answer

Accepted Solutions
IsabellaG
Expert Alumni

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

Did you receive an actual 1099-MISC for this income?  Unless you did, you should report your fellowship in TurboTax Home and Business as follows: 

  1. Go to the Personal Tab, then Personal Income, and say you'll choose what to work on. 
  2. Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice) 
  3. Choose Other income not already reported on a Form W-2 or Form 1099.
  1.  Answer Yes on the Other Wages Received screen.
  2. Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
  3.  Answer Yes on the Any Other Earned Income screen.
  4.  Choose Other on the Enter Source of Other Earned Income screen.
  5.   Enter your fellowship information on the Any Other Earned Income screen
  6. This will report your fellowship on line 7 of your Form 1040, and you will not be subject to Self-Employment Tax

As far as your states are concerned, it depends on your residency status. If you moved from one state to another and established a new residency, you'd file Part-Year Resident returns for both states, and pay taxes on the income that you earned while working in each state, plus any income from that state even when you weren't living there.

If one state remained your resident state, then that state would tax all of your income. The Nonresident state would also tax your income  that you earned there (there are two main ways that states calculate this), but your resident state would normally give you a credit for tax paid to another jurisdiction.


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5 Replies
IsabellaG
Expert Alumni

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

Did you receive an actual 1099-MISC for this income?  Unless you did, you should report your fellowship in TurboTax Home and Business as follows: 

  1. Go to the Personal Tab, then Personal Income, and say you'll choose what to work on. 
  2. Scroll to the Less Common Income section and choose Miscellaneous Income (the last choice) 
  3. Choose Other income not already reported on a Form W-2 or Form 1099.
  1.  Answer Yes on the Other Wages Received screen.
  2. Continue past Wages Earned as a Household Employee and Sick or Disability Pay.
  3.  Answer Yes on the Any Other Earned Income screen.
  4.  Choose Other on the Enter Source of Other Earned Income screen.
  5.   Enter your fellowship information on the Any Other Earned Income screen
  6. This will report your fellowship on line 7 of your Form 1040, and you will not be subject to Self-Employment Tax

As far as your states are concerned, it depends on your residency status. If you moved from one state to another and established a new residency, you'd file Part-Year Resident returns for both states, and pay taxes on the income that you earned while working in each state, plus any income from that state even when you weren't living there.

If one state remained your resident state, then that state would tax all of your income. The Nonresident state would also tax your income  that you earned there (there are two main ways that states calculate this), but your resident state would normally give you a credit for tax paid to another jurisdiction.


**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
mjohns47
New Member

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

I was resident of one state, was paid a stipend. I left that position to when I became a resident of another state and got a new position which pays with a stipend.  I reported the tax in the manner you suggested. Is there a way to indicate which stipend I received in each state so they proper state taxes the proper amount?
IsabellaG
Expert Alumni

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

What happens is that your federal tax return information will get transferred over to the states. Prepare the return of the state you moved out of first. As you proceed, you will find a screen where you can allocate your income to the state to which it belongs. The screens vary depending on which state it is. The same goes for State #2.
**Say "Thanks" by clicking the thumb icon in a post
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mjohns47
New Member

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

That makes sense. Thank you!
IsabellaG
Expert Alumni

I worked two separate fellowships (which payed with a stipend, no W2) in two separate states this year. How do I report this? Do both state get to tax my income?

You're welcome!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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