The purpose of a 1098-T is to allow students and the parents of dependents students to take an education-related tax deduction or credit. This statement is required to support any claim for an education credit. While some universities use the 1098-T to report fellowship stipend income, not all do.

Are stipends paid to students taxable?

Stipends are generally taxable. IRS defines a stipend as a fixed sum of money paid periodically for services or to defray expenses.

Are graduate stipends considered income?

Student stipends are not employee wages and the payer is not responsible for any income tax or employment related deductions. Stipends are paid to students for the purpose of allowing the student to further his/her program or academic requirement.

How are stipends reported?

Stipends reported to you on a stipend letter are treated for tax purposes as taxable scholarships. Per IRS Publication 970, taxable scholarships and fellowships should be reported on the tax return as follows: Form 1040 – Line 1; also enter “SCH” and the taxable amount in the space to the left of line 1.

What’s the purpose of a 1098-T for a graduate student?

However, the purpose of the 1098-T is to help students and parents of dependent students claim a tax credit or deduction, so some people might disregard it if it cannot be used for that purpose (i.e., the amount listed in Box 5 is greater than or equal to the amount listed in Box 2, which is typical for graduate students receiving stipends).

Do you get 1098-T from Cornell University?

Students receive a form 1098-T that is generated by the university in order to claim certain educational credits. While Cornell staff are not legally able to provide tax advice because each student’s circumstances will be different, we can explain what you can expect to see in the boxes and what that information might mean.

When do you not need to file Form 1098-T?

However, if the student receives scholarships, grants and/or fellowships in the preceding year in excess of the amounts they paid in QTRE, the University is not required to issue a Form 1098-T to the student.

Where is my Fellowship reported on my 1098-T?

Q: I am a graduate student and I received fellowship payments. Where is my fellowship reported on my Form 1098-T? A: For Form 1098-T purposes, fellowships are considered financial aid and will be reported in Box 5 as a (scholarships, grants, fellowships). Form 1098-T reports activity occurring in the calendar year.