Anyone out there have experience with paying taxes on fellowship income? This is my second year trying to do this... I'm set up for payroll deduction of my federal and state taxes on the fellowship, so I pay them as I go, and I'm aware that the fellowship income is taxable (although the school doesn't report it on my W2, grr), and I need to add it to what is reported and write the 'SCH' business on the 1040 and all that jazz. : )
What I'm not quite sure about is the issue of taxability of tuition benefits. Apparently the tuition that the fellowship pays on my behalf is taxable income, although the tuition that is paid on my behalf due to RAship is not? Is this correct? Anyone out there have any idea? Do I really need to add the tuition that the fellowship paid to my school to my income for 2005? Because that would be a real bummer. Does it make any difference that one fellowship was from my school and one was from the government?
Oh, I'm just babbling on now I guess. Sorry. I guess I'm hoping that someone out there is in a similar predicament or has experienced this before and can help me out.
What I'm not quite sure about is the issue of taxability of tuition benefits. Apparently the tuition that the fellowship pays on my behalf is taxable income, although the tuition that is paid on my behalf due to RAship is not? Is this correct? Anyone out there have any idea? Do I really need to add the tuition that the fellowship paid to my school to my income for 2005? Because that would be a real bummer. Does it make any difference that one fellowship was from my school and one was from the government?
Oh, I'm just babbling on now I guess. Sorry. I guess I'm hoping that someone out there is in a similar predicament or has experienced this before and can help me out.