International Student Received NonService Fellowship Letter instead of W2 form

Forum|Forum|2 years ago
March 11, 2024
2 replies
9 views

My client is an international student (J1 visa) performing services at his graduate school. He received a W2 last year, however this year he received a letter for Nonservice Fellowship Letter instead of W2 form. When I entered this amount in "Other Income" line 8r of 1040NR, his federal balance is around $4k. However, the letter he received states that this income is exempt since it's for services performed at school. Does anyone have any suggestion on how this situation should be handled?

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qbteachmt

Level 15

Would he have received a 1042-S instead of a W2?

Did you try the IRS tax wizard for this:

https://www.irs.gov/help/ita/do-i-include-my-scholarship-fellowship-or-education-grant-as-income-on-my-tax-return

Don't yell at us; we're volunteers

D

ddh2020Author

Level 3

thank you! he did receive a 1042-S last year, but not this year.

sjrcpa

Level 15

A NonService fellowship is for Services? I'm confused.

"the letter he received states that this income is exempt" - exempt from what?

Not that it helps, but I have seen Universities (big ones) give letters and not 1099s or W-2s for Graduate stipends/awards/fellowships. They were to US citizens.

The more I know the more I don’t know.

D

ddh2020Author

Level 3

I meant tax exempt. So the income works as any other income and the difference with a regular W2 is that there are no withholdings and he will need to pay taxes on his income as he would do with a 1099 form, correct?

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