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?
Would he have received a 1042-S instead of a W2?
Did you try the IRS tax wizard for this:
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.
thank you! he did receive a 1042-S last year, but not this year.
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?
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.