Determining Stipend After Taxes

[isittoolate]

I have received the 3 year AF scholarship and have a couple questions regarding my stipend that my recruiter has yet to answer:
1.) Of the $2,153 stipend I will receive for 10.5 months of the year, along with the O1 pay for 1.5 months of the year, what will I receive post taxes (in Massachusetts)? Is this stipend considered income? Therefore, would I just deduct 15% for my federal tax bracket and 5.25% for my MA state tax?
2.) How is the stipend disbursed? Is it monthly or biweekly?
3.) When will I receive my first stipend if I start school on September 1st?
4.) How can I get my NBDE I exam covered if I take it before my scholarship starts? My school gives students the opportunity to take NBDE I over the summer between D1 and D2 if they get B's or better in all of their classes. Therefore I am planning to take it this summer...I hope that I can still be reimbursed the $410 retroactively.
5.) For people who have already gotten the scholarship, did you have to take out any loans to cover any fees that were not covered by the AF? I do not have any savings at this point and plan on living off of the stipend, is there an amount that I should plan on taking out to cover the difference?

---

Members don't see this ad.

 

[Troyvdg]

I have received the 3 year AF scholarship and have a couple questions regarding my stipend that my recruiter has yet to answer:
1.) Of the $2,153 stipend I will receive for 10.5 months of the year, along with the O1 pay for 1.5 months of the year, what will I receive post taxes (in Massachusetts)? Is this stipend considered income? Therefore, would I just deduct 15% for my federal tax bracket and 5.25% for my MA state tax?
2.) How is the stipend disbursed? Is it monthly or biweekly?
3.) When will I receive my first stipend if I start school on September 1st?
4.) How can I get my NBDE I exam covered if I take it before my scholarship starts? My school gives students the opportunity to take NBDE I over the summer between D1 and D2 if they get B's or better in all of their classes. Therefore I am planning to take it this summer...I hope that I can still be reimbursed the $410 retroactively.
5.) For people who have already gotten the scholarship, did you have to take out any loans to cover any fees that were not covered by the AF? I do not have any savings at this point and plan on living off of the stipend, is there an amount that I should plan on taking out to cover
the difference?

Not sure how the AF works, but you should have received a hpsp handbook that contains the answers to all of these questions

Off the top of my head:

2. You get paid the 1st and the 15th of every month. The 15th to cover days 1-15 and the first to cover days 16-30
, this is out of the handbook, I'm not sure if that translates into you not being paid until the 15th during Sept. (Since the paycheck on the 15th is supposed to cover days 1-15)

 

[USArmyHPSP]

1. Stipend and active duty pay are both taxed. There is no telling you how much will be withheld. You determine that on your W-4.
2. 1st and 15th of each month unless those days fall on a weekend or holiday. If the disursement day is on weekends or holidays you get a direct deposit the day before.
3. Providing everything is input on time and correctly, you should recieve the first disbursement on the 15th but no later than the first of Oct.
4. Not sure about the Air Force, but in the Army you would not be reimbursed retroactively other than if you purchased books or equipment within 45 days prior to the start of your first academic year in the scholarship. Meaning if you purchased loupes on day one of D-1, you would not be reimbused on day one of D-2.
5. For the Army, we always recommend planning on a loan for at least the first semester in case the record is incomplete and the stipend/tuition gets held up. If the scholarship benefits come in on time, you can immediately pay it off. It's better to have it and not need it than to need it and not have it.

 

[isittoolate]

1. Stipend and active duty pay are both taxed. There is no telling you how much will be withheld. You determine that on your W-4.
2. 1st and 15th of each month unless those days fall on a weekend or holiday. If the disursement day is on weekends or holidays you get a direct deposit the day before.
3. Providing everything is input on time and correctly, you should recieve the first disbursement on the 15th but no later than the first of Oct.
4. Not sure about the Air Force, but in the Army you would not be reimbursed retroactively other than if you purchased books or equipment within 45 days prior to the start of your first academic year in the scholarship. Meaning if you purchased loupes on day one of D-1, you would not be reimbused on day one of D-2.
5. For the Army, we always recommend planning on a loan for at least the first semester in case the record is incomplete and the stipend/tuition gets held up. If the scholarship benefits come in on time, you can immediately pay it off. It's better to have it and not need it than to need it and not have it.

Thank you for the info! I just received a response from AFIT and they confirmed most of what you said. As for how much will be taxed, I have a friend who attends my school for Navy HPSP and he receives about $1900 post taxes here in Mass, so I am assuming that is what I will receive. I am planning on taking my NBDE I at the end of July, so that will be within 45 days.

As for the loan, I am planning on taking out a few thousand to cover anything that I am not immediately reimbursed for, but as of now, I already have everything set up for my stipend and am hoping that there will be no hiccups.

 

[teeth63a]

Search online for a tax withholding calculator. Your friend's income is based on what he entered on his W4 form, which may be different from your situation.