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bri-hiller
New Member

I receive a monthly stipend of $150.00 for being a full time student in a yeshiva (Talmudic college) in Israel. Do I report this income? If so, how?

 
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GeoffreyG
New Member

I receive a monthly stipend of $150.00 for being a full time student in a yeshiva (Talmudic college) in Israel. Do I report this income? If so, how?

The answer to your question is that your monthly $150 stipend is tax-free only if you are pursing an academic degree (and not just a religious designation or achievement), and if the stipend is used to pay tuition or fees to your Talmudic college as a condition for enrollment, or for specific courses.  The citation for this determination is (2016) IRS Publication 970, Page 5, which reads in part:

"Qualified education expenses

For purposes of tax-free scholarships, [stipends] and fellowship grants, these are expenses
for:
  • Tuition and fees required to enroll at or attend an eligible educational institution; and
  • Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction."

Here is a courtesy link to IRS Publication 970 (Tax Benefits For Education) for reference:

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


Once you determine how much, if any, of your $150 monthly stipend is taxable (or if the whole annual amount you received is taxable), then you can enter it into TurboTax (and thus onto your actual tax return) by following the process outlined in the following answer, which was recently provided to a graduate student with fellowship income.  Your (taxable) stipend would be entered in an identical manner to fellowship and grant income, on a US tax return.  Here is a clickable link to that discussion:

https://ttlc.intuit.com/questions/3736253


Thank you for asking this important question; and good luck with your studies.

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1 Reply
GeoffreyG
New Member

I receive a monthly stipend of $150.00 for being a full time student in a yeshiva (Talmudic college) in Israel. Do I report this income? If so, how?

The answer to your question is that your monthly $150 stipend is tax-free only if you are pursing an academic degree (and not just a religious designation or achievement), and if the stipend is used to pay tuition or fees to your Talmudic college as a condition for enrollment, or for specific courses.  The citation for this determination is (2016) IRS Publication 970, Page 5, which reads in part:

"Qualified education expenses

For purposes of tax-free scholarships, [stipends] and fellowship grants, these are expenses
for:
  • Tuition and fees required to enroll at or attend an eligible educational institution; and
  • Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction."

Here is a courtesy link to IRS Publication 970 (Tax Benefits For Education) for reference:

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


Once you determine how much, if any, of your $150 monthly stipend is taxable (or if the whole annual amount you received is taxable), then you can enter it into TurboTax (and thus onto your actual tax return) by following the process outlined in the following answer, which was recently provided to a graduate student with fellowship income.  Your (taxable) stipend would be entered in an identical manner to fellowship and grant income, on a US tax return.  Here is a clickable link to that discussion:

https://ttlc.intuit.com/questions/3736253


Thank you for asking this important question; and good luck with your studies.
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