Graduate School educational grant

[Greta]

Johns Hopkins medical graduate student submitted to me the 12/31/21 stub for $39,000, insisting that no W-2 or 1099 is issued for it. Additionally she received a 1098T that shows different amounts, with scholarship greater than tuition by 5K. I put the 39K on Wages worksheet as other income. It appeared on line 7. Now the IRS sent her a letter asking how she came up with the line 7 amount (which also included husband's W-2). Was the 39K subject to social security tax as well? Not sure how to handle a stub-only document.

[GodFather]

I have never entered information from a stub onto a tax return.  I'm not suggesting my way is right, I'm just stating a fact in my specific case. I would have asked for the client to try and obtain a copy of the the W2 from the employer in order to determine exactly how the wages were reported.  Is it possible she was a statutory employee?  

Why wouldn't the $39K be subject to social security tax?  

I personally would not handle a stub only document.

[dascpa]

Research scholarships and fellowships and how to enter.  You'll find that going thru the Student Education Worksheet taxable amounts will transfer to the Wages line with a SCH noted on that line.

[Terry53029]

I agree with @GodFather I would need to see a 1099 or W2

[dascpa · Accepted solution]

Not all scholarships or fellowships make it on to a 1098-T, W-2, 1099 or anything else - other than a letter.  I have two students who got full ride scholarship (room, board, tuition, etc.) and all we have in both cases is just a letter.  One from Stanford and one from University of Maryland - neither of small schools.  Sometimes we just have to deal with what we have.