Ask Experts Questions for FREE Help !
Ask
    clarkchong0's Avatar
    clarkchong0 Posts: 3, Reputation: 1
    New Member
     
    #1

    Mar 15, 2010, 03:36 PM
    Resident Alien reporting Stipend
    Dear all,

    I have a question about filing my tax return.
    I just became Resident Alien for tax purpose this year. And I am still receiving 1042-S from my school showing the amount of stipend paid to me and how much of which is withheld. (Income Code: 15 Scholarship or fellowship grants)
    I tried using TaxACT to file my tax online, however, I wasn't given a place to report the numbers on 1042-S.

    Instead, because of my low income (not counting the sitpend), I was offered Making Work Pay Tax Credit and EITC.

    Here are my 2 questions:
    1) Where shall I report my stipend income?
    2) If my total income including the stipend and wage comes to the amount of $19500, am I still eligible for any of the above tax credits?

    One remark: I tried asking the school to cancel my 1042-S and give me 1099 Misc instead, but they insist 1042-S is the correct form for them.

    Thank you!

    Best regards,
    Clark
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Mar 15, 2010, 08:18 PM

    If you are a degree candidate and if the financial aid (includes scholarship and fellowship) is for tuition fee, other fees, books, supplies and equipment, then it is not taxable. For a degree candidate aid for boarding and travel are taxable. If you are not a degree candidate, then all the financial aid is taxable. Scholarship and fellowship grants, Your U.S. Tax Return: The U.S. Income Tax Topics 1
    clarkchong0's Avatar
    clarkchong0 Posts: 3, Reputation: 1
    New Member
     
    #3

    Mar 19, 2010, 10:28 PM

    Thanks Mukata.
    It turns out that TaxACT actually has a help topic addressing my concern. I am attaching here for others reference :)
    Help Topic: Form 1042-S - Box 1, Code 15 Scholarship or Fellowship Income
    TaxACT FAQs

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!

Joint tax return non-alien resident and alien resident with form 1042s [ 3 Answers ]

Hi My wife is an alien resident, but we just got married, so I am still a non-alien resident. We are intending to fill out joint tax return as alien residents. But my problem is I have both w-2 and 1042s forms. The 1042s reflects my income from a fellowship which has been taxed each month. The...

Can I Jointly file tax return with spouse (resident alien & non resident alien) [ 1 Answers ]

I am in H1B worked in two different states in 2008 01Jan08 - 25Feb08 - Texas 05May08 - 13Aug08 - Texas 14Aug08 - 31Dec08- Illinois Note: march-April in India Spouse moved to US on 24 Oct 2008 in H1B got SSN in nov and doesn't have W2 for 2008 1. As per substantial presence test myself...

I was non-resident alien in 2007, but resident alien in 2008. Stimulus payment? [ 6 Answers ]

I was non-resident alien and filed 1040NR in 2007, but I was resident alien in 2008 and am filing 1040-EZ with Turbo tax. I am also seeing that, on the instructions for form 1040, it says: "This credit is figured in the same manner as the economic stimulus payment you may have received in...

Income tax returns Resident Alien or Non Resident alien [ 1 Answers ]

Hi, I came to USA for the first time on July 5, 2007 and working here in NJ. I am currently on H1B (Sept 2006 - Sept 2009). I am married and my wife came here in Sepetember 2007 on H4. My question is whether I need to file income tax returns as Resident alien or Non-resident alien for 2007? In...


View more questions Search