Official message from MOD: Stipend Increased to $2060

[lphiewok]

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Members don't see this ad.

I just got the message on MOD that stipend has increased to $2060.

I know many members already knew about it but I still figured to share since it's officially announced to HPSP recipients.

Title 10, United States Code, Section 2121, paragraph (d), directs the Secretary of Defense to annually adjust the amount of the Armed Forces Health Professions Scholarship Program and Financial Assistance Program stipend. Effective July 1, 2010, the monthly stipend for the F. Edward Hebert Armed Forces Health Professions Scholarship Program/Financial Assistance Program (AFHPSP/FAP) participants for the Fiscal Year (FY) 2010-2011 school year will increase from $1,992 per month to $2,060

 

[dentalmon]

how much we'll get after tax?

 

[teeth63a]

how much we'll get after tax?

it depends on what *you* set your withholdings to on your W4 form. For planning purposes, basically count on kissing 30% goodbye.

 

[New2Philly]

it depends on what *you* set your withholdings to on your W4 form. For planning purposes, basically count on kissing 30% goodbye.

Is it really 30%? That is $618 per month.....

 

[xhamburgersamx]

Is it really 30%? That is $618 per month.....

Most people get taxed between 5-10% on the stipend. At the end of the year, you'll owe about $1000 in taxes. Why not take 30% out if you can get a refund later?

 

[dheav005]

Most people get taxed between 5-10% on the stipend. At the end of the year, you'll owe about $1000 in taxes. Why not take 30% out if you can get a refund later?

'cause that means you are giving the government an interest-free loan for a year. you want minimal withholdings to maximize your personal capital!

 

[New2Philly]

'cause that means you are giving the government an interest-free loan for a year. you want minimal withholdings to maximize your personal capital!

Exactly! Esp if your using loans, or credit cards to supplement your income; you'll be losing money...

 

[teeth63a]

I'm not sure where the 5-10% figure came from. Looking at my own Leave and Earnings Statement, it's 30% tax between federal, state and FICA. My witholdings are set lower? (so I get taxed more) to offset contract work I do.

30% is the general number that many personal finance advisors give as a ballpark figure.

In any case the amount of tax that comes out is dependent on 1) your witholdings, 2) if your state has personal income tax (Texas does not).

But yes if your stipend is the only income you are making, the best thing is to minimize the amount of taxes being withdrawn so that you are not giving the govt a interest free loan, by adjusting your witholdings.

 

[dentalmon]

70% of 2060 is only like 1442... my rent alone is 1,000... how could i live off of 400 a month?... and why would my school tell me that I wouldnt need any additional loans ?...

i'm confused

 

[teeth63a]

basically count on kissing 30% goodbye.

some of which you may be getting back at tax time.

 

[xhamburgersamx]

'cause that means you are giving the government an interest-free loan for a year. you want minimal withholdings to maximize your personal capital!

HOw much interest are you expecting to earn with the going rates? A few bucks? You have to pay tax on interest as well. Might as well withhold 10-15% in case you decide to spend it all and have no more money left to pay your state and income tax when tax season comes around.

 

[xhamburgersamx]

70% of 2060 is only like 1442... my rent alone is 1,000... how could i live off of 400 a month?... and why would my school tell me that I wouldnt need any additional loans ?...

i'm confused

You won't get taxed 30%, I don't know where you are hearing this information from. The army assumes you have no other income and if you fill our the W4 correctly, you'll be taxed less than 10%. Your bonus is going to be taxed 30% but I received half of it back at the end of the year.

 

[teeth63a]

You won't get taxed 30%, I don't know where you are hearing this information from. The army assumes you have no other income and if you fill our the W4 correctly, you'll be taxed less than 10%. Your bonus is going to be taxed 30% but I received half of it back at the end of the year.

I'm hearing this information from experience. The army doesn't has no bearing on what the state you reside in takes out for taxes.

but ill get to the bottom of this.

 

[umkcdds]

70% of 2060 is only like 1442... my rent alone is 1,000... how could i live off of 400 a month?... and why would my school tell me that I wouldnt need any additional loans ?...

i'm confused

live somewhere cheaper? 🙄

your dental school lied.

i think the stipend was just a little over $1200, when i was in school, four years ago.

 

[alphabetsoup]

We just got our first pay check from the Navy and we get 1003.71 twice a month. They have never taken out the full 30% from our paychecks!

 

[lphiewok]

We just got our first pay check from the Navy and we get 1003.71 twice a month. They have never taken out the full 30% from our paychecks!

it's probably how you filled out your tax form.

i guess if you want to get full 2060 /mo, you will have to pay back taxes during tax season instead of getting some back.

I donno which scenario is better: to have paid tax and get refund or not to pay taxes and pay later..

 

[adrift1984]

it's probably how you filled out your tax form.

i guess if you want to get full 2060 /mo, you will have to pay back taxes during tax season instead of getting some back.

I donno which scenario is better: to have paid tax and get refund or not to pay taxes and pay later..

In financial terms it is always better to have as little withheld as possible and pay what you owe at the end of the year. Otherwise you are giving the government your money in the from of a free loan, money that you could have otherwise put to work.

 

[lphiewok]

yeah but sometimes i would like to budget myself and get extra cash later as bonus instead of using all the money and not having enough to pay for my taxes later.. i guess it will all depend on your spending style and budget skills

 

[teeth63a]

yeah but sometimes i would like to budget myself and get extra cash later as bonus instead of using all the money and not having enough to pay for my taxes later.. i guess it will all depend on your spending style and budget skills

that cash is not a bonus. that's your money that you worked for that the government is withholding. I'd rather have the cash in hand, and either get a minimal refund or pay just a little.

 

[goosestuff]

that cash is not a bonus. that's your money that you worked for that the government is withholding. I'd rather have the cash in hand, and either get a minimal refund or pay just a little.

+1 Teeth - why give the government an interest free loan, while instead you could put that "bonus" into savings collecting interest.