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Level 1
January 2, 2023
Question

How does a tax free stipend work?

  • January 2, 2023
  • 2 replies
  • 0 views
I am a traveller who lives in AL but works in rhode island and I get a tax free stipend

2 replies

Level 15
January 2, 2023

I assume that you are a traveling nurse. 

Stipends are tax-free when they are used to cover duplicated expenses. They cover typical living expenses such as lodging and meals and incidentals. These stipends do not have to be reported as taxable income if you can prove this duplication of living expenses.

 

 

DoninGA
Level 15
Level 15
January 2, 2023

Stipends are taxable income.  

 

You may not have to pay SS taxes or Medicare taxes on the stipend but it is taxable income.

Please explain why you believe the income you receive is not taxable.  What work are you doing for the stipend and did the organization paying the stipend inform you that it was not taxable?