If you received a stipend in earlier years you will have to file a return or amend a return you already filed to include your taxable fellowship and/or stipend.
Non-Taxable Fellowship - A fellowship payment received by a candidate for a degree, also called a “scholarship” payment by the IRS, is not taxable income to the student if it is used only for tuition and required fees and/or course related expenses, such as fees, books, supplies and equipment that are required of all students enrolled in courses. These payments are not taxable income to the student.
Taxable Fellowship – A payment, typically known as a "stipend", used for living and incidental expenses such as room and board, travel, equipment, i.e. computer or other expenses that are not required of all students enrolled in courses. These payments are taxable income to the student.
How To Report
- Select Federal Taxes (Personal in the Self Employed or Home & Business edition).
In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.
- Select Deductions & Credits, and in the new screen, click on I'll choose what I work on.
- Scroll down the Education screen .
- Click on the Start/Update button next to the Expenses and Scholarships (Form 1098-T) category.
- Click Update
- Follow the prompts (there will several questions to complete before arriving at the section to report your fellowship)
- When you arrive at the section "Did You Receive a Scholarship or Grant in 2013?"
- Select Yes and follow the prompts
Please review Publication
970 - Tax Benefits of Education for additional information.
You can use the information below to amend a return or create a return for prior years.
- How to amend (change or correct) a return you already filed
- How do I file a prior year tax return?
