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I am searching for a data field or trigger in Lacerte that will allow graduate level taxable scholarships or stipends to be considered wages for ROTH IRA contribution purposes.

RESEA
Level 2

I am unable to locate accommodations in the Lacerte individual program to allow graduate level scholarships and stipends to be considered as wages for ROTH IRA contribution purposes.  Amounts from form 1098-T  box five (scholarship)  and an amount from a non-payroll year to date pay stub (stipend) are listed in the appropriate field of screen 14.1.  There is no provision to flag these amounts as amounts eligible to be used for ROTH IRA contribution wage limitation amounts.  The following is the law change I am attempting to comply with:

SEC. 106. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND PAYMENTS TREATED AS COMPENSATION FOR IRA PURPOSES.
(a) In General.—Paragraph (1) of section 219(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following: “The term ‘compensation’ shall include any amount which is included in the individual’s gross income and paid to the individual to aid the individual in the pursuit of graduate or postdoctoral study.”.

 

Thanks for any assistance that can be provided here.

 

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