How does my child report fellowship income from a school she doesn't attend? It was a summer fellowship from a different university than the one she attends.

Forum|Forum|7 years ago
June 3, 2019
1 reply
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My child is filing her own taxes and has added the info for her 1098-T at her home school. She was paid a fellowship by a different university for a summer internship. They did not provide her with any federal forms, just a state form. How does she report that fellowship stipend?

TurboTax Deluxe Windows

L

Leonard11_2

Employee

Your daughter will report her fellowship stipend in TurboTax Deluxe by following these steps

With TurboTax open select Wages & Income click on I'll choose what I work on

Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C

On the next page select Other reportable income

On the page Other Taxable Income enter fellowship stipend in the description.

This will put the income on Schedule 1 Line 21 of your 1040, as required by the IRS. You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.

Hal_Al

Employee

It's actually better to enter it at educational expenses, so it will show as SCH income on line 1 (rather than other income on line 21). That way it counts as earned income for calculating a dependents standard deduction. If she is not her parent's dependent, then it won't matter.
After entering the 1098-T, the education interview will eventually ask if she has other scholarship income (in addition to what's in box 5 of the 1098-T)