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A stipend is a form of salary, such as for an internship or apprenticeship.tipend has a specific, different, use in the Church of England, meaning the salary of a stipendiary minister, one who receives payment directly from the diocese (as opposed to other forms of disbursement such as free use of a house in return for clerical duties, known as house-for-duty).
These payments are not taxable income to the student. Taxable Fellowship â A payment, typically known as a stipend, used for living and incidental expenses such as room and board, travel, equipment, i.e. computer or other expenses that are not required of all students enrolled in courses. These payments are taxable income to the student. How To Report. Select Federal Taxes (Personal in the Home & Business edition). In Online TurboTax, click the bars at the upper left corner to show Federal Taxes on the selection list; enlarge the screen if needed to show the left side selection list.