wjm@lcuxc.UUCP (B. Mitchell) (03/01/85)
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)
luner@uwai.UUCP (03/18/85)
<><><><><> Question: If my (I know to be taxable) assistantship requires my to pay tuition, is that amount for tuition deductible if I itemize? I'd like to know if anyone has tried this and what happend to them. /David
brett@ucla-cs.UUCP (03/26/85)
> > <><><><><> > > Question: If my (I know to be taxable) assistantship requires my to pay > tuition, is that amount for tuition deductible if I itemize? > > I'd like to know if anyone has tried this and what happend to them. > > /David Good point. Here is what my book says: "You may deduct the ordinary and necessary expenses you have for education, even though the education may lead to a degree, if the education: Is required by your employer(YES IT IS IN YOUR CASE), or by law or regulations, for keeping your salary, or job, if the requirements are for a business purpose(ARE THEY?); or Maintains or improves skills required in doing your present work" You may NOT deduct your expenses if the education is: Required to meet the minimum educational requirements of your work Part of a program that will qualify you for a new trade or business -------- Examples: Educational expenses and expenses for travel, meals and lodging to obtain doctorate were deductible for a professor. Degree wasn't required to meed mimimum education requirements for employment. (PRESUMABLY HE/SHE WAS AT A SCHOOL WHERE BEING A PROF. DIDNT NEED A P.hD.) I dont really know the answer, but I presume the IRS thinks you cant. Maybe if you told us more about your current career and your career goals, a definite answer could be given. Without this, I expect your expenses are part of a program that will qualify you for a new trade or business - and thus are not deductible. -- Brett Fleisch University of California Los Angeles 3804 Boelter Hall Los Angeles, CA 90024 Phone: (213) 825-2756, (213) 474-5317 brett@ucla-cs.ARPA or ...!{cepu, ihnp4, trwspp, ucbvax}!ucla-cs!brett -------------------------------------------------------------------------
lwe3207@acf4.UUCP (Lars Warren Ericson) (03/28/85)
New York University interprets graduate teaching and research assistantships to be non-taxable. The payroll department does not withhold; if they do so by accident (often happens at the beginning of the year), they can be told to stop, and the IRS will return the withheld amound at tax time. The key point is that all assistants are required to work 10 hours/work, and this is considered part of the educational process. Given that distinction, the Federal regulation is that it is equivalent to a scholarship or fellowship, and is non-taxable. You are probably paying taxes for nothing, unless your graduate program hires very few assistants and they are paying you something like a living wage (>$14K) instead of the $6K-$9K usual for assistantships. Lars Ericson NYU