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).
