tax question

[179466]

Is the HPSP stipend taxeable income?

For the past two returns I only claimed the active duty pay as taxeable income.

I based this off of seeing no provision for HPSP on the IRS guidelines, and reading that ROTC stipends were not taxeable.

This sounds like a question for NavyFP.

Thanks

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[ArmyDocDude]

To my understanding, the HPSP stipend IS taxed. I have been doing a lot of checking into things and I just got the scholarship, but I am pretty sure I remember my recruiter saying that it is taxed.

I'm surprised you were able to not claim it on your taxes. That is interesting to me, because now I am questioning what I heard. There is a lot of discussion on the HPSP, and everything about it, in the stickies in the military medicine section. I'm sure that there are people there who would know for sure.

 

[BlueIsis]

My accountant said we needed to pay taxes on it. DFAS is withholding tax, FICA etc. on it - they think it is taxable.

The good news it that unless you have another larger source of income you'll wind up getting most of it back in the form of a refund.

 

[NavyFP]

Is the HPSP stipend taxeable income?

For the past two returns I only claimed the active duty pay as taxeable income.

I based this off of seeing no provision for HPSP on the IRS guidelines, and reading that ROTC stipends were not taxeable.

This sounds like a question for NavyFP.

Thanks

Stipend is taxable for Federal and State Income Tax. If I remember correctly, they don't take Soc Sec or Medicare out.

 

[Jolie South]

so, they will take out withholding before sending me my share or will I possibly have to claim it and pony up the tax next April?

 

[jfitzpat]

so, they will take out withholding before sending me my share or will I possibly have to claim it and pony up the tax next April?

You fill out a W-4 and they withhold accordingly. Also, like NavyFP said, they only withhold federal and state (if you have them) taxes. No medicare or social security.

 

[Jolie South]

You fill out a W-4 and they withhold accordingly. Also, like NavyFP said, they only withhold federal and state (if you have them) taxes. No medicare or social security.

is that something done as part of the application process (can't remember if i did it) or at your branch's officer training?

 

[NavyFP]

is that something done as part of the application process (can't remember if i did it) or at your branch's officer training?

When you fill out all the paperwork when you join, one of the papers should be a W4.

 

[Jolie South]

When you fill out all the paperwork when you join, one of the papers should be a W4.

thanks. now that i think about it i know they have my direct deposit info, so surely they have my W-4.