Discussion:Taxable? (Stipend)
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Discussion Forum Index --> Tax Questions --> Taxable? (Stipend)
| 18 February 2007 | |
| Is a stipend received by an intern (not a doctor completing residency) usually a taxable event? If taxable sometimes; what is the determinant? | |
| 18 February 2007 | |
| Is the income from a stipend reported and, if so, how is it reported?
A stipend is defined as a fixed sum of money paid periodically for services or to defray expenses. The fact that remuneration is termed a “fee” or “stipend” rather than salary or wages is immaterial. Wages are generally subject to employment taxes and should be reported on Form W-2. Refer to Publication 15, Circular E, Employer’s Tax Guide, section 5, Wages and Other Compensation, for rules on accountable and nonaccountable plans for employee business expenses. | |
| 18 February 2007 | |
| ADDITIONAL INFORMATION:
The taxpayer received a notice from the payer (Department of Mental Health County of Los Angeles) indicating that the recipient will not be receiving a W2 form or a statement of earnings from the foundation and further to refer to Pub 970 | |
| 18 February 2007 | |
| from the foundation This looks like some kind of Grant, Scholarship ect. payment | |
| 18 February 2007 | |
| 'ADDITIONAL INFORMATION'
The idea was for the stipends to be used for educational purposes, but there was no requirement that they be used as such. As it is the stipend payment was used to pay down student loans. | |
| February 19, 2007 | |
| CAI - Did you read Publication 970? | |
| 20 February 2007 | |
| I read pub 970 and everything seems to point to the the event as being a taxable one, however - I was unable to verify this without a doubt. | |
