confused about 1098-t for fellowship

[closetgeek]

Hi everyone,

 

I'm trying to file my taxes (cutting it close, I know!) and I'm confused about how to report my fellowship. I started receiving my fellowship in the fall, and I received a W-2 for being a GRA before this. I reported my W-2, and then filled out the 1098-t form.  The only form the school has given me for the fellowship is the 1098-t form. I've done my taxes on turbotax and it says I owe money and H & R block says I'm receiving money, so I'm doing something wrong one one of these! Am I supposed to report the income I received from the fellowship elsewhere? 

 

Thanks!

[elietrask]

I'm in the EXACT same boat! Someone please help this fetus (me) file his first tax return. On Turbotax I'm getting money back ($63 NY), but I'm afraid I didn't fill this out right because many of my classmates said they had to pay taxes- also, my fellowship went straight into my bank account untaxed. Doesn't that mean I should owe money? I followed the directions and reported the fellowship money under "Scholarship listed on 1098-T," but that did nothing to my refund/penalty score...

Edited April 15, 2013 by elietrask

[Pitangus]

The best way I've found to report a taxable fellowship stipend in TurboTax is to report it as a "fellowship not listed on a 1098-T" (even if it was). Then when you proceed you should see a Yes/No checkbox asking if you were required to complete an internship or other service position for this fellowship (this would be "No" for most fellowships I would think). Then there's another checkbox asking if you used the fellowship for "nonqualified" expenses (non-educational expenses; I think it lists rent and few other things). Check the "Yes" box and enter the amount used for non-education expenses (this would be the whole stipend you received untaxed as a check or direct deposit or whatever, unless you used some for required textbooks or had to pay some of your tuition/fees yourself using this stipend).

 

When you go to Forms mode in TurboTax, you want to see your stipend recorded as "SCH <your stipend amount>" to the left of line 7 on the federal Form 1040. If you see that then your stipend should be accurately included in the calculated taxes you owe.

Edited April 15, 2013 by Pitangus

[closetgeek]

The best way I've found to report a taxable fellowship stipend in TurboTax is to report it as a "fellowship not listed on a 1098-T" (even if it was). Then when you proceed you should see a Yes/No checkbox asking if you were required to complete an internship or other service position for this fellowship (this would be "No" for most fellowships I would think). Then there's another checkbox asking if you used the fellowship for "nonqualified" expenses (non-educational expenses; I think it lists rent and few other things). Check the "Yes" box and enter the amount used for non-education expenses (this would be the whole stipend you received untaxed as a check or direct deposit or whatever, unless you used some for required textbooks or had to pay some of your tuition/fees yourself using this stipend).

 

When you go to Forms mode in TurboTax, you want to see your stipend recorded as "SCH <your stipend amount>" to the left of line 7 on the federal Form 1040. If you see that then your stipend should be accurately included in the calculated taxes you owe.

Okay, thanks for your help!