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Level 1
posted Mar 18, 2022 6:12:17 PM

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?

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.

0 2 3703
2 Replies
Expert Alumni
Mar 18, 2022 7:20:31 PM

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.

Level 15
Mar 19, 2022 4:21:03 AM

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).