How do I report 1042-S fellowship income on FreeTaxUSA for grad students?

I'm a grad student trying to figure out how to report my fellowship income from 1042-S on FreeTaxUSA. Been in the US for over 5 years now, so I'm considered a tax resident. My university provides these 1042-S forms for our stipends, but I'm completely lost on how to enter this in FreeTaxUSA. Has anyone had success using FreeTaxUSA for this particular form? I'm also open to switching to another platform like CreditKarma or something else if they handle 1042-S forms better. My university keeps pushing Glacier Tax Prep for international students, but since I'm a resident for tax purposes now, I'm not sure if that's the right choice. Plus I have some investment income, contributed to an HSA this year, and will be filing jointly with my spouse. Not sure if Glacier handles all that well or if it's mainly designed for non-residents. Would appreciate any advice from fellow grad students or anyone who's dealt with 1042-S forms before! Thanks!

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18 comments

Gianna Scott

•8M

I've helped several grad students with this exact issue. For tax residents reporting 1042-S income on FreeTaxUSA, you need to enter it as "Other Income" since FreeTaxUSA doesn't have a specific input for 1042-S forms. Go to the Income section, scroll down to "Miscellaneous Income," then select "Other Income" and enter the amount from Box 2 of your 1042-S. In the description field, type "Fellowship 1042-S" or something similar so it's clear what the income represents. This ensures it gets reported properly. As for your question about other tax prep options - unfortunately, CreditKarma (now Cash App Taxes) also doesn't have dedicated 1042-S support. Glacier Tax Prep is primarily designed for nonresidents, so it's not ideal for your situation with investments, HSA, and joint filing.

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Gianna Scott

•8M

You'll also want to enter the federal tax withheld from Box 7 on your 1042-S. In FreeTaxUSA, go to the "Federal" section, then "Payments & Penalties," and select "Income Tax Withheld from Forms." There you can enter withholding from various forms including 1042-S. For joint filing, the "Other Income" will be attributed to whichever spouse received the fellowship. FreeTaxUSA will ask you to specify which spouse earned each type of income. This is important for certain calculations, but ultimately on a joint return, all income is combined regardless of which spouse earned it.

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Alfredo Lugo

•8M

After struggling with the same 1042-S issue last year, I discovered taxr.ai (https://taxr.ai) and it was a game-changer for my fellowship reporting. The site has specific tools for academic income reporting including 1042-S forms that FreeTaxUSA and other mainstream software totally miss. Their system automatically detected my fellowship income was partially taxable and partially qualified for exclusion, which I would have never figured out on my own. It also handled my HSA contributions perfectly and even found me an education credit I didn't know I qualified for.

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Alfredo Lugo

•8M

Yes, it absolutely works for joint filers! I filed jointly with my spouse who has regular W-2 income while I had the fellowship with 1042-S. The system handles combining both types of income correctly on the same return. The service uses AI to analyze your documents but then provides specific guidance for your exact situation rather than generic advice. They have a team of tax professionals who specialize in academic situations like fellowships, grants, and international student status. I was impressed by how much more they understood about my specific situation compared to the generic tax software I tried before.

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Kaitlyn Jenkins

•8M

I was initially skeptical about specialized tax services, but after trying taxr.ai for my fellowship income reporting, I have to admit I was wrong. The site immediately recognized my 1042-S form and correctly categorized which portions were taxable vs. non-taxable - something I had messed up for years using standard tax software. It ended up saving me nearly $1,800 because it properly applied the qualified education expense exclusion to part of my fellowship that FreeTaxUSA would have fully taxed. Plus it correctly handled my spouse's W-2 income and our investment accounts. Definitely using it again this year!

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Caleb Bell

•8M

If you need help sorting out your 1042-S issues, you might consider calling the IRS directly. Of course, that's easier said than done - I spent 3+ hours on hold trying to get clarification about my fellowship income last year. Then I found Claimyr (https://claimyr.com) and it completely changed the game. Their system got me connected to an actual IRS agent in under 15 minutes! You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with provided the exact guidance I needed for reporting my fellowship income correctly as a resident alien, including which portions might qualify for exclusion based on my specific situation. Much more helpful than digging through confusing online advice.

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Caleb Bell

•8M

They use a combination of automated systems and callback technology. Instead of you sitting on hold for hours, their system navigates the IRS phone tree and gets in line for you. Once they're near the front of the queue, you get a call so you can talk directly to the agent. So no, they're not just paying people to wait on holds for you. It's still relatively new which is why not everyone knows about it yet. There's no real catch - the service just solves a really specific but frustrating problem. For tax questions as specific as 1042-S reporting for residents vs non-residents, sometimes talking directly to the IRS is the only way to get a definitive answer.

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Rhett Bowman

•8M

I have to eat my words about Claimyr. After my skeptical comment, I decided to try it when I needed clarification about reporting my fellowship 1042-S income. I was connected to an IRS representative in about 12 minutes instead of the 2+ hour wait I experienced last time I called. The agent walked me through exactly how to report my fellowship income on FreeTaxUSA and explained which boxes on the 1042-S form needed to be reported where. They confirmed that as a tax resident, I needed to report it differently than when I was a nonresident in previous years. Saved me a ton of confusion and potentially avoiding an incorrect filing. Sometimes you really do need to talk to a human at the IRS.

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Abigail Patel

•8M

Grad student here - I've been filing with 1042-S forms for 3 years now. If you're a tax resident (the substantial presence test applies after 5 years for most student visas), you should treat your 1042-S fellowship income similar to how you'd report scholarship/fellowship income on a 1098-T. Important distinction: For tax residents, the scholarship/fellowship portion used for tuition and required fees is non-taxable, but amounts used for living expenses are taxable. This is different from non-resident treatment.

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Abigail Patel

•8M

You'll need to look at your student account statement from your university to see the breakdown. The university doesn't typically distinguish this on the 1042-S itself. Compare your total qualified educational expenses (tuition, required fees, but NOT room and board) against the total fellowship amount. Any amount of your fellowship that went toward qualified expenses can be excluded from taxable income, while the remainder (often your stipend for living expenses) is taxable. Your university's financial aid office or international student office should be able to provide the necessary documentation showing this breakdown if you don't already have it.

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