Ask Experts Questions for FREE Help !
Ask
    sri_taxhelp's Avatar
    sri_taxhelp Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 2, 2007, 11:20 AM
    Filing 1040, and have 1042-S with tax withheld
    I am from India and have been in the U.S for 8 years and working on H1B , so have been filing 1040(since its been more than 5 yrs) I am also doing my Part Time school during which I received a $1000 scholarship towards my summer semester of which $300 was withheld. I got a 1042-S form with the following entries:
    1. Income Code : 15
    2. Gross Income : 1,000
    5. Tax Rate : 30.00
    7. U.S Fed Tax Withheld: 300

    I have my regular w2 from my company. Do I need to enter any of this 1042-S information in my 1040? Also I am claiming tax deduction for my tuition. I received my 1098-T form and I usually file whatever is in it. And this year there is a new entry in that form(1098) about scholarships and grants which is $1000.

    Please advise.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 5, 2007, 01:32 PM
    You can add the income to wages on Line #7 of Form 1040 or 1040A and add the $300 on the WITHHELD line.

    Debit your tuition amount by $1,000 for the scholarship on the Form 1098-T.
    sri_taxhelp's Avatar
    sri_taxhelp Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Apr 5, 2007, 02:12 PM
    Quote Originally Posted by AtlantaTaxExpert
    You can add the income to wages on Line #7 of Form 1040 or 1040A and add the $300 on the WITHHELD line.

    Debit your tuition amount by $1,000 for the scholarship on the Form 1098-T.

    I thought you don't have to add this to the income line. Just the $300 on the withheld line and debit the tuition amount.
    Can you please clarify?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Apr 16, 2007, 01:26 PM
    The fact that money was withheld tends to indicate that the money was paid as a result of a service performed. If so, then the $1,000 IS taxable.

    If no service was performed, then the $1,000 is exempt.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Which TAX form I have to submit 1040 or 1040 NR [ 1 Answers ]

Hi I was on F1 status from Jan-2006 to May-2006 and had no income. From June-2006 to current I am on OPT status. I worked from August-2006 to December-2006 on OPT status. Which TAX return form I have to submit? 1040 or 1040 NR or I have to submit 1040 and 1040NR separately. Thank

Box 6 Medicare Tax Withheld [ 1 Answers ]

My program doesn't pick up on this as far as a refund. Do you not get back any of the medicare tax withheld? Also, Atlanta Tax Expert, if they agreed I was exempt from FICA, are you also exempt from the MED/EE?

Filing 1040EZ instead of 1040 NR-EZ [ 1 Answers ]

Hi, I was on F1 status for the whole year of 2005. By using some software I have filled 1040EZ instead of 1040NR-EZ. As I couldn't get one w-2 form in time, I amened the return (I obtained through 1040EZ) using 1040X. Will there be any issue with this. Do I need to submit anything to show to...

Is filing 1040 OK for F1 students [ 3 Answers ]

Hello, I have been going through this forum and have discovered that I may not be using the right tax forms. I filed my 2003 and 2004 tax returns using Turbo Tax. I have been in the USA for over 300 days in each of the 3 years from 2003-2005. In 2003, I was on F1 Visa throughout the year and...

Filing 1040 and 1040 NR [ 1 Answers ]

If I earn part of my income on my OPT and part on my H-1, can I use the India deductible of $4500 for my OPT part of the income, and $4850 std deductible for the H1 part of the income?

View more questions Search