paying tax on an educational stipend

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Latest post 07-09-2009 4:48 AM by LdiJ. 3 replies.
  • 07-07-2009 7:50 PM

    paying tax on an educational stipend

    My daughter received a stipend(5500) for a summer internship program at a major university.  The check came with a note that this was taxable.  However at the end of the year she never got a 1099.  When I called they said they don't send them, but it is taxable.  I'm confused.  I thought you got a 1099 or W2 for taxable income.  Thanks in advance.

  • 07-07-2009 7:54 PM In reply to

    Re: paying tax on an educational stipend

    Oreo13:
    I thought you got a 1099 or W2 for taxable income.

    Not always.

    But it's still income and it's still taxable.

    Nothing to be confused about.

     

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  • 07-07-2009 11:11 PM In reply to

    Re: paying tax on an educational stipend

    It may not be taxable----may depend on if its essentially an education scholarship like for tuition  or compensation for some sort of useful work.

     

    The fact that university called it income does not mean its taxable . You need to dig harder--its a muddy topic.

     

  • 07-09-2009 4:48 AM In reply to

    • LdiJ
    • Top 50 Contributor
    • Joined on 02-20-2004
    • Posts 808

    Re: paying tax on an educational stipend

    I would guess that the money was included on her 1098T as part of her scholarships.  Otherwise yes, the university would have needed to issue either a W2 or a 1099.

    Scholarship money can be taxable to the extent that it exceeds allowable higher education expenses.

    See IRS Publication 17 for more details on the taxability of scholarship money.

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