Hi,

I am in H1B status for the past 3 years and have been filing my taxes in the 1040 form since I am considered a resident for tax purposes.

I am also doing my Phd part time.. Last year I received about a $8500 fellowship. ( I received around $7300 after a tax withholding). This was a merit based fellowship and is not in return for any service performed.

The questions I have are.

1) Do I need to declare this income in form 1040 ? (I don see any place to do that) I also believe I am exempt from Tax ?

2) Will be able to get a refund of the $1200 that was withheld from the fellowship ?

1) Yes, you claim it as "Other Income" on Line #21 of Form 1040.

2) You may or may NOT be exempt. I would have to examine the Form 1042-S to be sure.