How to file Internship wages

Forum|Forum|6 years ago
March 17, 2020
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Hello,

I worked at an internship last summer 2019 where my taxes were not withheld. The stipend payments I received are considered taxable Scholarships and Fellowship Grants and were granted to assist me cover living expenses associated with my participation with the program. However, I am finding it difficult figuring out how to declare this stipend.

I am currently using TurboTax Deluxe and thought about declaring this stipend under the "Other Scholarships/Grants/Fellowships" portion option in the "Deduction & Credits" section of my federal tax form; however, it states that these would be scholarships/grants/fellowships that I won that helped me offset college costs (i.e. tuition, books, etc.) but my internship stipend was not utilized towards this. The stipend was used to help cover living expenses during the internship period and not my school costs. Does anyone know what would be the best way to solve this issue?

My internship was in Tennessee, but my home state is Texas.

Thank you for all your help!

JamesG1

You were on the right track.

To report stipend income in TurboTax, you must visit Deductions and Credits, Education Expenses section. You must answer all the questions, the taxable amount will be computed as the excess of your scholarship over the qualified education expenses.

Federal Taxes
Deduction & Credits
Scroll down to Education
Select Expenses and Scholarships
Follow the prompts…

It will be somewhat confusing as you are answering the questions as if you claim an education credit. Answer the initial questions and select that you did not receive form 1098-T. You will be asked for school’s name and address, just fill out the program information you are in.

You will eventually see a screen Did (your name) receive a scholarship or grant in 2016? Please enter your stipend in Other Scholarships/Grants/Fellowships; this will ensure that the stipend is taxable on line 7 form 1040 as wages.

Once done, you may review your form 1040 and to verify that line 7 of the form looks correct. You may do so prior to paying for the program:

From My Account drop down, select Tools (you must be logged into your tax return)

Select View Tax Summary,

Select Preview my 1040 .

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