Tax on stipend?

[attackemu]

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Hey guys--

I'm wondering whether your grad student stipend is taxed, or if it (along with the money you 'receive' through tuition waiver) is immune from taxation. So if a university offers you 22,000 for 9 months, is that what you actually receive? How does this work?

Thanks!

 

[paramour]

Yep, your stipend is taxed, just like any other money you would receive through "employment."

 

[JockNerd]

Not if you're a Canadian studying in the States 😉

 

[paramour]

Not if you're a Canadian studying in the States 😉

Oooh, sneaky bastards! 😛

 

[TheOverachiever]

Yep, your stipend is taxed, just like any other money you would receive through "employment."

Didn't think about it like that. I was thinking it was like scholarship money you get in undergrad.

 

[2011clinicalpsy]

Didn't think about it like that. I was thinking it was like scholarship money you get in undergrad.

Any amount over actual school expenses is taxable.

This is from the IRS:

If you received a scholarship or fellowship, all or part of it may be taxable, even if you did not receive a Form W-2. Generally, the entire amount is taxable if you are not a candidate for a degree. If you are a candidate for a degree, you generally can exclude from income that part of the grant used for: Tuition and fees required for enrollment or attendance, or Fees, books, supplies, and equipment required for your courses. You cannot exclude from income any part of the grant used for other purposes, such as room and board.

There is a special stipend for graduate students regarding waived tuition:
Tax-free treatment of reduced tuition can also apply to a graduate student who performs teaching or research activities at an educational institution. The qualified tuition reduction must be for education furnished by that institution and not represent payment for services.

Hope this helps!

 

[futureapppsy2]

My GRA stipend is taxed but exempt from FICA, as was my pay as an undergrad RA (except during the summer--not sure if that will be the case here yet). Is it standard to exempt student employee pay from FICA taxation?

 

[paramour]

Didn't think about it like that. I was thinking it was like scholarship money you get in undergrad.

Most scholarships don't require that you work as slave labor, er, as grad assistants, in exchange for the money. 😛 (Or at least my scholarships didn't require that stipulation.)

 

[TheOverachiever]

Any amount over actual school expenses is taxable.

This is from the IRS:

If you received a scholarship or fellowship, all or part of it may be taxable, even if you did not receive a Form W-2. Generally, the entire amount is taxable if you are not a candidate for a degree. If you are a candidate for a degree, you generally can exclude from income that part of the grant used for: Tuition and fees required for enrollment or attendance, or Fees, books, supplies, and equipment required for your courses. You cannot exclude from income any part of the grant used for other purposes, such as room and board.

There is a special stipend for graduate students regarding waived tuition:
Tax-free treatment of reduced tuition can also apply to a graduate student who performs teaching or research activities at an educational institution. The qualified tuition reduction must be for education furnished by that institution and not represent payment for services.

Hope this helps!

Oh that makes sense! Thanks

 

[TheOverachiever]

Most scholarships don't require that you work as slave labor, er, as grad assistants, in exchange for the money. 😛 (Or at least my scholarships didn't require that stipulation.)

My scholarship donors must have tricked me!!! LOL Jk, good point. But this is why they shouldn't tax it, you work way too hard for it haha