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Re: Taxable Fellowship Stipends? Herbert B. Chermside 10 Apr 2002 16:04 EST

A fellowship is not "earned income", subject to FICA, etc.  Hence no W-2
1099, etc.
A fellowship IS "income", but is not taxable if certain conditions are met.
Try IRS Publication 520, Scholarships and Fellowships and Tax Topic 421,
Scholarship and fellowship grants.

I went to IRS.gov, and in two clicks found this directly applicable page:
http://www.irs.gov/faqs/display/0,,i1%3D54%26genericId%3D15747,00.html

Chances are that your student meets the qualifications such that part or
all of the fellowship is not taxable, but only review of the facts in her
individual situation will determine this.

Chuck

At 03:53 PM 4/10/2002 -0400, you wrote:
>Hi All
>
>I just had a very distraught student come in to my office.  He is receiving
>a federal fellowship stipend.  He was told by the awarding agency that it is
>not taxable.  H&R Block did his taxes last year and told him that it was not
>taxable.  He received no 1099 or other forms indicating that he needed to
>pay taxes.  He just received an e-mail from his program officer saying that
>his stipend is, indeed, taxable.
>
>If anyone has had experience with this, I would appreciate any insight you
>can give.
>
>THANKS,
>Marie
>
>
>
>%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
>Marie F. Smith, CRA
>Manager of Grants Administration
>Institute of Ecosystem Studies
>PO Box AB, 65 Sharon Turnpike
>Millbrook, NY 12545
>Tel: 845-677-5343
>Direct Line: 845-677-7600 x 202
>FAX: 845-677-5976
>E-mail: xxxxxx@ecostudies.org
>http://www.ecostudies.org
>
>
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Herbert B. Chermside, CRA
Director, Sponsored Programs Administration
Virginia Commonwealth University
PO BOX 980568
Richmond, VA  23298-0568
Express Delivery Only:
 Sanger Hall, Rm. 1-032A
 11th & Marshall Streets
 Richmond, VA  23219
Voice:  804-828-6772
Fax     804-828-2521
OFFICE e-mail   xxxxxx@VCU.EDU
Personal e-mail xxxxxx@vcu.edu
http://views.vcu.edu/ospa/

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