Graduate school stipend("Other income") on a 1099 and investing

[chocolate123]

I am going to start grad school in the fall. I am lucky enough to have received a full scholarship plus a living stipend. I have learned that the living stipend is taxable via a 1099 that we receive in January.

I just move back from an overseas job, and plan to seek the "foreign earned income exclusion."

What are my tax-free investment options for this year? Can I contribute to a Roth?

[chocolate123]

bumpppp

[Petunia 100]

Haven't you already asked this question?

To contribute to a Roth, you must have earned income. A stipend is not considered earned income. If you have income from a job, self-employment income, or alimony, you may contribute to a Roth, up to 5.5k or the amount of your earned income, whichever is less.

If you are married and filing a joint return, your spouse's earned income could be used to fund your Roth.

[chocolate123]

I don't think I understood "earned income" until just now. Thank you!