Can a graduate student who receives all of his income through scholarships contribute to an IRA fund?

I am paid to do research as a graduate student, but all of my income technically comes from grants/scholarships/fellowships. I am doing my taxes now online, but the site I’m using won’t let me deduct my 2007 traditional IRA contributions because I don’t have any ‘earned income’. Is there any way for me to contribute to an IRA?

This entry was posted on Monday, January 25th, 2010 at 8:49 pm and is filed under Scholarships. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

One Response to “Can a graduate student who receives all of his income through scholarships contribute to an IRA fund?”

  1. v b Says:

    The payment you receive to do research is to be added to the wages line.

    But, for IRA purposes, if you do not have a W-2 showing the income in box 1, it doesn’t count.

    Pub 970:
    Individual retirement arrangements (IRAs). You can set up and make contributions to an IRA if you receive taxable compensation. Under this rule, a taxable scholarship or fellowship is compensation only if it is shown in box 1 of your Form W-2, Wage and Tax Statement. For more information about IRAs, see Publication 590.

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