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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?

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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