wapd@houxj.UUCP (01/24/84)
Does one have to pay social security tax (now 6+ percent) on scholarship income ? I called a social security office and the best I could get was "the IRS does all of that for us". The question is interesting because Bell Labs paid me some money to go to school, called it salary and withheld SS taxes (and paid matching money, I guess), and now the IRS says it was scholarship, not salary (fine with me). Bill Dietrich houxj!wapd
warren@ihnss.UUCP (01/24/84)
A friend of mine once had this problem. She was paid by her school for teaching, but for her program this was a mandatory activity, and thus the payment was considered a scholarship, not salary. The school, however, paid lots of TA's who were just hired help, so they withheld taxes and social security from it. As I recall, she had to get some sort of signed statement from the school to the effect that the payment was a scholarship and the withholding was their error and file it with her tax return, claiming over-witholding of social security as a credit. It seems likely that in the case of a company paying you, you probably have to get a similar statement from the company. Good luck! -- Warren Montgomery ihnss!warren IH x2494