Peter,

For an IRS discussion of the "student FICA exception," see also the
Internal
Revenue Bulletin issued February 2, 1998. I found this information more
useful
for an institution's policy formation than Publication 520, which discusses
 the
individual's obligation for payment of income tax as opposed to the FICA
withholding by the institution.

Go to http://www.irs.ustreas.gov/prod/bus_info/bullet.html, and in the
selection
list, scroll down to "Internal Revenue Bulletin 1998-05 Weekly." Download
this
PDF file and look on page 19 for information about Rev. Proc. 98-16.

Hope this helps.

Molly Daniel
Sarah Bush Lincoln Health System
____________________Reply Separator____________________
Subject:    Re: Taxes for stipends
Author: Robert Kazalski <xxxxxx@ADMIN.UMASS.EDU>
Date:       05/27/99 2:28 PM

Please check out the IRS web site:
Publication 520, Scholarships and Fellowships
The web site address is:  www.irs.ustreas.gov/prod/forms_pubs/p52001.htm
This address worked as of 3/3/99.
Good luck,
Robert
At 09:05 AM 5/27/99 -0500, you wrote:
>We have a number of students who have individual PREdoctoral fellowships
>from NIH and who receive that support in the form of stipends.  Where
>can I find info on whether they must report stipends to the IRS and the
>extent to which these are taxed?
>
>Attachment Converted: "c:\apps\eudora\attach\dolcep191.vcf"
>
-----------------------------------------------------------------------
Robert J. Kazalski                e-mail:  xxxxxx@admin.umass.edu
Accountant
Controllers Office
University of Massachusetts
Amherst, MA 01003
Phone:  413-545-1411
Fax:  413-545-4233
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