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Old 03-23-2009, 03:54 AM
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Join Date: Mar 2009
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Complicated scholarship stuff with 1099-MISC

Hello, first I'd like to say thanks so much for your help! I'd really really appreciate any advice.

Here's how the numbers stack up:

I got a form 1099-MISC reporting in box 3 (other income?) about $40,000. This was part of a fellowship of about $55,000 in total (the rest of it was paid later and I have not yet received a form)

However, I'm an enrolled student and almost all of it was for tuition - so doesn't that mean that most should be untaxable?

I got a 1098-T from the school for one semester - about $17,000 in tuition but there's also the second semester and mandatory program fees (both being $28,000 together; $45,000 total) which I have paid

On Turbotax, I filled in the info as-is for the 1099-MISC and then under deductions reported about $28,000 of tuition plus the amount on the 1098-T but it still says I have to pay an insane amount of taxes, not taking into account my normal income. It's saying I'd pay about $5000 fed, $3000 state on this fellowship. What am I doing wrong?? Do I just not report the fellowship since it shouldn't be taxable? Then how do I explain this whopping unexplained number on my 1099-MISC?



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