Anne,

We pay stipend students without with-holding for taxes but send them an
IRS Form-1099 at the end of year.  With the frequent tax law changes the
answer to this question changes, depending on your interpretation of the
law.  I say no, because it is a scholarship and not "work for hire", but
others have different opinions.

We (Research Foundation) duck the question by making it the students
responsibility to figure out their personal tax situation.  That is one
function of higher education, letting people learn some personal
responsibility.

When in doubt.....punt.

Chuckles
ODURF

>>> Anne Womack <xxxxxx@GRANTS.WM.EDU> 07/23/98 05:37AM >>>
 The NASA training grants for graduate students (a prefix of "NGT"
in front of the award number, always for $22,000/year now, for
three years):   Will the students have to pay income tax on their
stipend portion  ($16,000/year)?  There seems to be some confusion as
well as different methods out there.

 I will appreciate any and all responses.

Anne Womack CRA
Director of Sponsored Programs
Grants and Research Administration
The College of William & Mary
Williamsburg, VA 23187

xxxxxx@grants.wm.edu
(757)221-3967 (phone)
        -4910 (fax)