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I was awarded a grant to conduct research independently in another country. The grant was not tied to the work. I am NOT a student. Where do I file this?

Forum|Forum|3 years ago
April 8, 2023
2 replies
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I was not required to teach in order to get the money. I was just given a large lump sum and used it to conduct research independently for 5 months, and to live off of.

TurboTax Deluxe Online

Best answer by Hal_Al

Q. The grant says it's taxed "as a scholarship, not a job."

A. OK, the main question is answered: it's classified as scholarship income.

Q. But Turbo tax seems to link all scholarships to being a student. So I don't understand where to enter it, in TurboTax.

A. You have to use a work around.

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

--Education Expenses and Scholarships

After answering no to having a 1098-T, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line is new for 2022).

P

PattiF

The grant would be reported as Other Income on Line 8 of Schedule 1 of your tax return.

You would enter that by following these steps:

Sign into your tax return
Go to Wages & Income
Scroll to Less Common Income
Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable income
Use the description Research grant and the amount

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W

washingon2103Author

Thank you for this detailed answer.

The thing I'm confused about is that it isn't income; it's a scholarship. I wasn't required to work in exchange for the money and I'm not a student.

Hal_Al

Employee

It kinda depends on who's paying you and why they are paying and who is the beneficiary of the research.

References:

https://ttlc.intuit.com/questions/3091932-is-a-fulbright-teaching-grant-to-a-foreign-country-that-pays-per-diem-expenses-taxable

https://www.irs.gov/individuals/international-taxpayers/fulbright-grants

https://ttlc.intuit.com/questions/4695785-have-a-nsf-fellowship-software-is-showing-taxes-of-6000-on-22000-of-agi-this-is-unearned-income-after-adjusting-for-tuition-seems-very-high-is-this-an-error

https://ttlc.intuit.com/community/taxes/discussion/i-received-an-art-grant-from-a-non-profit-and-it-is-not-supposed-to-be-taxable-they-reported-it-on-a/00/760809

W

washingon2103Author

Thanks for the links! Yeah I've read most of these---Here's what's not clear. The grant says it's taxed "as a scholarship, not a job." But Turbo tax seems to link all scholarships to being a student. I'm not a student.

So I don't understand where to post it! "Other job" seems wrong because it's not a job.

Hal_AlAnswer

Employee

Q. The grant says it's taxed "as a scholarship, not a job."

A. OK, the main question is answered: it's classified as scholarship income.

Q. But Turbo tax seems to link all scholarships to being a student. So I don't understand where to enter it, in TurboTax.

A. You have to use a work around.

In TurboTax (TT), enter at:

Federal Taxes Tab (Personal for H&B version)

Deductions & Credits

-Scroll down to:

--Education

--Education Expenses and Scholarships

After answering no to having a 1098-T, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line is new for 2022).