Should stipend be included in taxable income?

evil_neo · #1 (**permalink**) 01-22-2008, 09:29 AM

Hi all,

Can anyone please clear my doubt regarding Stipend.

I was a trainee in a company and received stipend for a period of 6 months.
After that i was inducted in the company and received salary.

My question is that will the stipend be added to my taxable income for the year 2007-08??

plz help me out. thanks

TaxGuru · #2 (**permalink**) 02-12-2008, 08:57 AM

If you received a W-2 or a 1099-Misc that includes the Stipend amount, the amount of income would be taxable.

If the Stipend is simply a travel reimbursement, then I suspect that you would not be receiving a 1099-Misc or a W-2. In this case, they would not be taxable.

In any case, the Employer will be withholding federal and state taxes from your Stipend if it is taxable, so I would not worry about having additional taxes due during the tax filing.