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suzanuregen
New Member

I'm in an army program (like ROTC), where I get a stipend attending school. I also have ADT during the year. I received a w2 for all this and owe a ton of fed tax now?

 
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LeonardS
Employee Tax Expert

I'm in an army program (like ROTC), where I get a stipend attending school. I also have ADT during the year. I received a w2 for all this and owe a ton of fed tax now?

Your W-2 income and stipend income are both taxable.  However, you must report your stipend properly or you will be liable for self-employment tax on your stipend which will increase the tax you owe.

 

Follow these steps to report your stipend income to ensure it is not subject to self-employment Tax:

  1. With TurboTax open select  Wages & Income click on I'll choose what I work on 
  2. Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C 
  3. On the next page select Other reportable income 
  4. On the page, Other Taxable Income enter ROTC Stipendt in the description.  

 This will put your stipend income on Schedule 1 Line 8 of your 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax. 

 

Review your tax situation to ensure that you are receiving any educational tax credits/deductions you may be eligible for.

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1 Reply
LeonardS
Employee Tax Expert

I'm in an army program (like ROTC), where I get a stipend attending school. I also have ADT during the year. I received a w2 for all this and owe a ton of fed tax now?

Your W-2 income and stipend income are both taxable.  However, you must report your stipend properly or you will be liable for self-employment tax on your stipend which will increase the tax you owe.

 

Follow these steps to report your stipend income to ensure it is not subject to self-employment Tax:

  1. With TurboTax open select  Wages & Income click on I'll choose what I work on 
  2. Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C 
  3. On the next page select Other reportable income 
  4. On the page, Other Taxable Income enter ROTC Stipendt in the description.  

 This will put your stipend income on Schedule 1 Line 8 of your 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax. 

 

Review your tax situation to ensure that you are receiving any educational tax credits/deductions you may be eligible for.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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