2007-03-01 18:23:43 · 2 answers · asked by fadlsokkar 1 in Business & Finance ➔ Taxes ➔ United States
I assume you are a degree candidate and a US citizen or resident.
If you receive a W-2 from the school, your reporting is easy, as the taxable amount will appear on the W-2. If the school is also providing you with free tuition or other qualified educational expenses, that amount will not appear on the W-2 and is not taxable.
If you do not receive a W-2, some of the fellowship may be taxable. Fellowship money spent on tuition, fees, books, equipment, supplies is not taxable. Fellowship money that is payment for services you provide such as teaching or research is taxable. Enter that amount on the income line of the 1040 (or 1040A or 1040EZ) with the letters "SCH" .
This does not cover all cases. More details appear in Publication 970.
http://www.irs.gov/publications/p970/ch01.html#d0e437
2007-03-02 01:01:23 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
A fellowship is taxable income. File a tax return like everyone else. As a PhD candidate, you're not a dummy.
2007-03-02 06:35:04 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋