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I am a graduate student. I am trying to fill out my taxes. My fellowship covers both my tuition and provides me with a monthly stipend. On my 1098-T (document that says how much I paid for schooling) it says how much tuition my fellowship covered. On my tax forms (1040) how do I put in my monthly stipend I get from my fellowship?

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You start with reading the IRS Publication 970. Specifically for your question - the chapter that discusses taxable and non-taxable fellowships.

Once you figure out the taxable portion of your fellowship (basically everything not applied to the tuition), follow the instructions in this chapter of the same publication as to how to report. For 1040 filers such as yourself, you would put the amount on line 7 (whether you got a a W2 or not).

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  • even if this is out of scope for an answer this is ok for a comment. How does one actually fill it out? Like what software etc does one use? – Charlie Parker Jun 15 at 16:00
  • @CharlieParker In US I used turbo tax. its free for filing federal and up to 1 state. It was pretty easy to use. – bdeonovic Jun 17 at 15:51
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I tried doing it myself with turbo tax and somehow did it wrong and it suggest I owed 1000 or more. I did it with the H&R block software and it said I owed 0. Thus I decided to seek a professional at H&R.

Since I had no W2 and only a 1098-T I didn't have to declare anything and thus owing 0 was the correct amount. Also, since I owed zero and didn't really have to make the tax form the H&R advisor didn't even charge me (and I was guaranteed I did it correctly).

Bottom line, call them and ask. Better to do it with a pro is my advice.

Turbo tax is overhyped, it's not good at all actually.

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  • I do agree that it usually pays to have professional people do things. Its also worthwhile to learn the about the process yourself to be able to identify when the pros mess up (because they do). – bdeonovic Jul 18 at 15:25
  • I should also note: just because you don't get a W2 doesn't mean the money you get is tax free. Your scholarship may or may not be taxable. Generally speaking, a scholarship or fellowship is tax free if you are a degree candidate and the award is used to pay for tuition and required fees, books, supplies and equipment, however there are some scholarship and fellowship opportunities that are not tax exempt. Any amount used to pay for room and board or a stipend for living expenses is taxable – bdeonovic Jul 18 at 15:27
  • @bdeonovic my answer is not meant to substitute to doing taxes or is legal advice. There are lots of details like the ones you mentioned that one can learn if one does their taxes themselves (like I did). I learned that even 1 day of my most intense focus didn't yield productive results. The professionals I sought didn't charge me in my case because of how everything aligned (details your are mentioning). I personally think there are better things to do with my PhD time than do taxes. Also, H&R did not charge me because I had no W-2 and more details. Thanks for your comments! :) – Charlie Parker Jul 18 at 21:25

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