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My school summer (taxed) stipend is part of my W-2 that was sent from my employer. This income isn't part of my regular salary. Can this be subtracted/added to education?

I was given the stipend to cover my summer/not working while studying for the bar test. It was provided to me in 3 taxed installments. The amount is added in as part of my salary/wages on my W-2. The increased salary is putting me into a different tax bracket. I'm wondering if the stipend can be accounted for in my education and removed from my salary W-2 income? My employer also reimbursed me and paid for the bar test itself. Can that be added to my education and be removed from my W-2 income?
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1 Reply
Vanessa A
Expert Alumni

My school summer (taxed) stipend is part of my W-2 that was sent from my employer. This income isn't part of my regular salary. Can this be subtracted/added to education?

No.  The Stipend cannot be counted as an education expense and removed from your salary since it was not used for  qualified education expenses.  

 

Stipends to cover general living costs are considered taxable income and are not deductible. 

 

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