Tax Law (Questions About Taxes)/Student taxes

Advertisement

Expert: John Stancil, CPA - 6/30/2009


Question
Hi there! I'm a PhD student, so I'm being given a stipend in order to study and work an assistantship. Will this be taxed? The school is also paying my tuition and fees so I won't have that reduction. The stipend is pretty modest (for New Jersey anyway) at $23,000 for a 9 month position (which means possible income during summer months to make a little more). Is that amount taxable? I've never made this much money in the past, and have always had tremendous tuition bills to pay. I'm trying to budget how much money I will have during graduate school and would like to know what sort of taxes I will be paying. Thanks for your help!

Answer
Aleaxandria,

Thanks for you question.

Yes, that amount is taxable.  You should have been a PhD. student in the mid 80's like I was - it was not taxable then.  The law changed in the late 80's making that income fully taxable.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts

Volunteer

John Stancil, CPA

Expertise

I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I teach tax and accounting at a small church-related college. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a part time tax practice for over 35 years. I am a member of the AICPA, National Association of Tax Professionals, and the Institute of Management Accountants. Visit my website at www.johnstancilcpa.com. Also visit my blog, www.thetaxdocspot.com. Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and four professional certifications: CPA, CMA, CGMA, and CFM. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 30 years and have taught accounting and tax at the college level for over 30 years.

Organizations
AICPA, FICPA, IMA, NATP

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill College

©2012 About.com, a part of The New York Times Company. All rights reserved.