Thoughts on fellowship/stipend

fordiscussion
Thu, 16 Feb 2012 13:46:25 +0000

Son is a PhD student. He has his tuition paid for, plus health care and $1000 a year for books. In addition, he was paid a stipend each month for the entire year. He also did an internship in another state for 12 weeks for which they gave him an addition amount every week for “living expenses”. I understand he has to pay tax on everything but his qualified tuition. I also understand that this money is claimed as “scholarship/grant” income on line 7 of the 1040 and does not qualify him for earned income for the purpose of putting money into a Roth IRA. This is all reported to him on a 1099-misc as “other income”

Is there any way he can claim some of it as non employee compensation? Even though he would pay self employment tax on it, it would allow him to put money in his Roth.

He has to rent a place to stay for those 12 weeks of his internship. Can he deduct this? If so, on what line or schedule of his tax return?

Any help or guidance is appreciated.