[prashant_wit]

I am a resident alien working on a H1B visa. My wife is a non-resident alien in a F1 visa. Both of us received W2 forms. She also received a 1098-T form for a fellowship she received last year. Her 1098-T has $4200 gross income and $2500 tution expenses with $0 federal tax withheld.

I would like to file a joint federal return. How do I include this information in my tax return?

Appreciate the help. Thanks in advance.

[MukatA]

What is this gross income for?
You can take tuition and fee adjustment deduction that is shown on Form 1040, line 34 or 1040A, line 19. For this you need to do Form 8917 (Tuition and Fees Deduction) based on Form 1098-T received from educational institution..

[prashant_wit]

Thanks for the information Mukta...
The gross income is the Fellowship she has received in the year 2008 (sorry for the confusion).
She was also working for 20hrs for which she has received the W2 from.

But the fellowship income, for which she did not work (she was not supposed to) has not been reported in W2 form, she has received the 1098T for that instead.

Her tuition expenses are less than what she has received as fellowship which they said is taxable (box 1 amount is less than box 5 for 1098T).

Where do I report the taxable fellowship amount in 1040 ?

And do I need to fill any other form ? (like the one u mentioned earlier... the tuition deduction form?

Thanks again for the information. I found this help desk very helping and informative.

[AtlantaTaxExpert]

You report the taxable fellowship income on Line #7 of Form 1040 with the letters "SCH" on the dotted line on Line #7.

The tuition (up to $4,000) is deducted as an adjustment to income on the lower third of the Form 1040.