Taxes on stipend?

[NOLAdentist2016]

I've been told that there are taxes taken out of the stipend and bonus (like, 6K of the bonus ). Can any current HPSP recipients comment on how much their monthly take home pay is?
I'm know it varies, but I"m looking for a good estimate of what I'll be getting. I'll be in Boston and it seems like the stipend will still leave me with a very tight budget every month.
Also, it seems like the stipend increases a little each year. Last I heard it's currently $2060 before taxes. How much do you think it will be next year?

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[MatthewLeeDDS]

First off, I'm pretty sure the stipend is at $2088 now. It will go up slightly next year but don't expect more than about a $30/month bump, if that.

Your take home will vary depending on your state income taxes. Oklahoma, where I live, passed a bill last year exempting military income from income taxes. I pay about $164/month in federal, and the old Oklahoma rate took about $76/month. Also, looking at recent pay stubs, it looks like federal dropped a couple bucks and I'm paying $160/month in federal income taxes now since Jan 2012.

Living in Oklahoma is awesome because the cost of living is very inexpensive (I pay $400/month for a small 1 br apartment close to my school) so I can save a lot of my stipend. In Boston, you may need to take out loans to help cover your living costs. Just be smart with your money and minimize the extra loans if you need them.

The best way to know what you'll get is try to find someone on the HPSP from your state (maybe someone at your school?) and ask them what their take home is. I'm halfway through school on the Air Force HPSP so feel free to message me if you have any questions!

 

[Coenobita]

This is based on state of residency correct? What if we go to an out of state school?

 

[MatthewLeeDDS]

This is based on state of residency correct? What if we go to an out of state school?

I assume you'd just be taxed by whatever state you had your permanent residence regardless of your in-state/out-of-state designation by the school whether they're the same or not.

 

[Firm]

Yes, there are taxes.

 

[NOLAdentist2016]

I assume you'd just be taxed by whatever state you had your permanent residence regardless of your in-state/out-of-state designation by the school whether they're the same or not.

I'm wondering about this one too, since I'll be a LA resident but living in MA. I'm pretty sure I'll pay MA state tax and not LA though. That's the way it worked all through undergrad when the situation was reversed (I was a MA resident but had a student job in LA where I went to school).

I guess our "work" address/location will be our school. Too bad for me that it's in Taxachusetts!

 

[USArmyHPSP]

You will be taxed based on the W-4 that you filled out when you first accepted the scholarship. If you want see or wish to change the W-4, I suggest that you contact the HPSP office.

 

[teeth63a]

I see the answer to this question spread across 5 comments.

Your tax is dependent on:
1) Your w-4 exemptions you claim. The more exemptions you claim, the less tax is held. You need to consult with your accountant as to what your appropriate level of exemptions are, or use the guide on the W4.

2) Your state tax. Tax rates are different between states. Some states don't tax military personnel or have a huge exemption. The federal government will tax you based on your home of record/permanent residency address. I'm from Hawaii and went to school in California, but paid Hawaii income tax until I changed to Texas residency.

Search Google for "income tax calculator" or "paycheck calculator" for online calculators that will give you a basic estimate. Generally speaking, kiss 20-30% of it goodbye.