I received a W-2 from my university when I was a graduate assistant, but my understanding is the position was a stipend and was not taxable income. Are stipends taxable?

Forum|Forum|4 years ago
March 19, 2022
2 replies
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No taxes were taken out and I did not have to report it for Unemployment, but TurboTax seems to think it is taxable because I'm entering it as a W-2.

TurboTax Deluxe Online

PattiF

The IRS treats as compensation any amount properly shown in Box 1 of Form W-2. This needs to be entered as a W-2. See IRS Publication 590-A for more information.

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Hal_Al

Employee

Stipends are taxable, even if not reported on a W-2. But it's a common misunderstanding thinking they're not, because there is frequently no tax form (W-2 or 1099) issued. It would be taxable even without a W-2 or 1099.

Wages and stipends paid to a student by their university are not subject to FICA (social security and medicare) tax. Boxes 4& 6, on the W-2 should be blank (or 0).