Skip to main content
July 26, 2024
Question

Student ta

  • July 26, 2024
  • 2 replies
  • 0 views
No text available

    2 replies

    Hal_Al
    Employee
    July 26, 2024

    Q. Is the money I receive for being a student Teaching Assistant (TA) taxable?

    A. It depends on how you were paid and what form the pay was reported on. Simple answer: if the amount was included in box 5 of your form 1098-T, it is treated as scholarship (and is tax free to the extent of qualified expenses incurred). If it's shown on a W-2, it's taxable wages. 

     

    From IRS Publication (Pub) 970 (page 6):

    Payment for services. Generally, you can't exclude from
    your gross income the part of any scholarship or fellowship grant that represents payment for teaching, research,
    or other services required as a condition for receiving the
    scholarship. This applies even if all candidates for a degree must perform the services to receive the degree.
    However, see Exceptions next.

    Exceptions. You don't have to treat as payment for
    services the part of any scholarship or fellowship grant
    that represents payment for teaching, research, or other
    services if you receive the amount under:
    • The National Health Service Corps Scholarship Program,
    • The Armed Forces Health Professions Scholarship
    and Financial Assistance Program, or
    • A comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in that section).
    Example 1. You received a scholarship of $2,500. The
    scholarship wasn't received under any of the exceptions
    mentioned above. As a condition for receiving the scholarship, you must serve as a part-time teaching assistant. Of
    the $2,500 scholarship, $1,000 represents payment for
    teaching. The provider of your scholarship gives you a
    Form W-2 showing $1,000 as income. Your qualified education expenses were at least $1,500. Assuming that all
    other conditions are met, the most you can exclude from
    your gross income is $1,500. The $1,000 you received for
    teaching must be included in your gross income.
    Example 2. You are a candidate for a degree at a
    medical school. You receive a scholarship (not under any
    of the exceptions mentioned above) for your medical education and training. The terms of your scholarship require
    you to perform future services. A substantial penalty applies if you don't comply. The entire amount of your grant
    is taxable.

    https://www.irs.gov/pub/irs-pdf/p970.pdf

    rjs
    Employee
    July 26, 2024

    The OP removed the original question after an answer was posted.