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From: wjm@lcuxc.UUCP (B. Mitchell)
Newsgroups: net.taxes
Subject: Re: Graduate Student Stipends
Message-ID: <313@lcuxc.UUCP>
Date: Fri, 1-Mar-85 11:59:32 EST
Article-I.D.: lcuxc.313
Posted: Fri Mar  1 11:59:32 1985
Date-Received: Sat, 2-Mar-85 05:03:05 EST
Organization: Bell Communications Research, Inc.
Lines: 18

In the United States, scholarships and other stipends are generalkly exempt from Federal
Income Tax (and therefore from most state income taxes) IF they are outright
grants (such as scholarships and fellowships) or if they are payment for
work that is REQUIRED for your degree requirements.  Therefore, if you
are required to complete a thesis for your degree a research assistantship
for your thesis project is not taxable income.  However, since most grad
students are NOT required to teach to get their degrees (although education
majors may be an exception), most teaching assistantships are taxable income.
Check with the financial aid office at your school - they can tell you
what part of your stipend is and isn't taxable.
Also get the IRS publication on "Educational Expenses" or "Income".  I don't
remember the number - you can also get Publication 17 "Your Federal Income
Tax" from the IRS, which covers all aspects of US Federal Income Tax and
cross references these other publications.
The best part of these is that they are official IRS information, and are FREE
for the asking from the IRS
Regards,
Bill Mitchell ({ihnp4!}lcuxc!wjm)