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NHSC recipients? please answer-TAXABLE?

Discussion in 'Medical Students - DO' started by larryj, Jan 30, 2000.

  1. larryj

    larryj Member 10+ Year Member

    Oct 10, 1999
    Anyone who is a National Health Service Corps scholarship reciepient? I am interested in knowing how much stipend you actually receive after taxes.

    It is my understanding that you are taxed on the full amount (tuition, books, travel, and stipend).... they with-hold taxes on all of this from your stipend?

    I am trying to do the math on this;
    $23000 tuition
    $11500 stipend ($964x12)
    $34500 taxable income.
    Take a moderate tax bracket of 30%, you then owe $10350 per year in taxes. that is $862 per month they will with-hold from your stipend each month??? leaving a "take home" stipend of about $100 per month.

    Someone please tell me I have misunderstood the way these are calculated.

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  3. Mayqswet

    Mayqswet Senior Member 10+ Year Member

    Jun 9, 1999

    From what I've heard, you're absolutley correct. However, I have also heard that there is legislation in the process of being presented (and hopefully passed one day) that gives retroactive exemption to the taxation of the NHSC scholarship. Time will tell.

  4. togo

    togo Senior Member 10+ Year Member

    Sep 2, 1999
    I don't know where all of this is from, but I am a NHSC scholar and I receive $890/mo. in stipend after taxes are taken out.
  5. doatc

    doatc Senior Member 10+ Year Member

    Oct 25, 1999
    Lake Bluff, IL, USA
    I believe the NHSC and HPSP scholarships follow the same tax guidelines. The only thing that is taxed is your stipend. Most states do not tax military pay, but they may take their share of the NHSC stipend. My HPSP stipend is $973/mo and I take home $969.88. The FICA taxes are also not witheld .
  6. 4242

    4242 New Member

    Feb 1, 2000
    Are you having the maximum amount of taxes taken out of each check? Will you have to pay out during tax time?
  7. doatc

    doatc Senior Member 10+ Year Member

    Oct 25, 1999
    Lake Bluff, IL, USA
    I guess the last post was directed to me. I claim 2 deductions on my W-4 and I am also married. I have just finished our taxes and there dosen't seem to be a lack of withholding.

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