Is the HPSP monthly stipend taxed, or do you receive the full 2870$/month in 2025 and then report it as taxable income?

[Cyrus_Knight]

Basically the question. I’m also wondering how would the tax return look like, assuming no other sources of income other than the 20k sign in bonus. Thanks in advance!

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[Helpful Troll]

It's taxable income. You'll pay tax on the 20k bonus too.

 

[flightdoc09]

Yes, it is taxed for income tax purposes. However I don't think you pay social security or medicare taxes on it. I think you just pay that on the annual training (full pay) money you earn. It has been a few years, but I do recall being taxed on that differently than everything else. I could be mistaken though.

Also , just an FYI, I believe the stipend is fixed at 75% of O1 base pay. So you can look up each year's pay chart and calculate how much you'll make when the new pay scale goes into effect.