Reporting foreign fellowship as resident alien

Forum|Forum|4 years ago
April 6, 2022
3 replies
44 views

Hello,

I'm a Canadian citizen on F-1 OPT status. I was enrolled in a graduate program in the US and graduated in summer 2021. This is my first year as a resident alien. For part of 2021, while I was enrolled I held a fellowship paid directly to me by the Canadian government.

Should I report this foreign fellowship now that I am a resident alien? From what I remember in previous years, as a nonresident alien, I did not have to report this scholarship. My understanding is that, as a resident alien, I need to report all international income.

Thanks in advance

Tax Advice

Best answer by DaveF1006

If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions, according to IRS.com.

You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.

Research is not included in the description above so this is taxable income. here is how to report.

Go to federal>income and expenses>all income>>show more
Less Common Income> Start
Miscellaneous Income,>start
Other reportable income>start
Next screen asks Any Other Taxable Income>yes
The next screen will allow you to report the fellowship income with a brief explanation.

To report, you will use the conversion rate at the time the fellowship was paid to you.

@Sohal

LoganathanB

Level 7

Yes, all Citizens, and resident aliens should report worldwide income in their tax returns.

You are subject to tax on worldwide income from all sources and must report all taxable income and pay taxes according to the Internal Revenue Code.

Click on the link for more information

Worldwide Income

SohalAuthor

Level 2

Thank you for the response. Just to clarify, this was a fellowship paid directly to me by the Canadian government for the purposes of conducting research, while I was a student at a US university. Is this counted as income or a scholarship? Where should I include this information in my return? The funds were also paid to me in Canadian currency. Do I just use the conversion rate at the time they were paid to me, or the current conversion rate to US dollars?

DaveF1006Answer

Level 15

You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.

Research is not included in the description above so this is taxable income. here is how to report.

Go to federal>income and expenses>all income>>show more
Less Common Income> Start
Miscellaneous Income,>start
Other reportable income>start
Next screen asks Any Other Taxable Income>yes
The next screen will allow you to report the fellowship income with a brief explanation.

To report, you will use the conversion rate at the time the fellowship was paid to you.

@Sohal

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