Hi! I've been poking around online and it's not easy to find the answers I'm looking for. I was hoping someone might have some insight...
I received my first stipend check for the research fellowship I'm doing. I get paid bimonthly from July 04- June 05. It's done through a check request to the account holding my money at Brown, and I received an Invoice and my stipend check.
But no tax was withheld. What tax will I be paying? I live in Rhode Island, the fellowship is HHMI in Maryland, and I work in Rhode Island. Along with the stipend are two allowances which I believe are tax-free spending accounts.
It's a little weird not having any idea of how much of this check is actually mine to spend.
If you want a little more oddness thrown in.... I also performed with my circus group in the first half of this year, and made roughly $800'ish (not sure, ballpark estimate). How do I declare that? Just gets listed somewhere as income through the Providence Circus School?
Posted by Dagonee (Member # 5818) on :
I'm hesitant to post on this, because I know nothing about it formally, but I researched it a little for my own taxes: http://www.irs.gov/faqs/faq-kw83.html
Good luck figuring it out. By the way, my wife works in the office of general counsel at HHMI in MD.
Dagonee
Posted by dabbler (Member # 6443) on :
Thanks. I poked around there as well, but I wasn't sure what it meant. Like with
quote:If you are a candidate for a degree, you generally can exclude from income that part of the grant used for: Tuition and fees required for enrollment or attendance, or
Fees, books, supplies, and equipment required for your courses.
My stipend doesn't necessarily cover tuition costs, but I could pay tuition for next year with it? I'm a candidate for a degree, but on a year-break from the school (med).
Posted by katharina (Member # 827) on :
When I was on stipend, I had to pay income taxes on it. However, the school took them out for me. I'm not sure why yours didn't.
Posted by Dagonee (Member # 5818) on :
Then I'd start with HHMI - I know they're really good folk there. Even if they won't answer for fear of giving tax or legal advice, they can probably point you to a free source of information.
Dagonee
Posted by dabbler (Member # 6443) on :
Well playing around with the IRS tax calculator, it looks like if it's full income, then my federal income tax will be roughly 9%. Not so bad. Rhode Island looks like it might be 25% of federal tax.
So, somewhere between 0% and 11.25% lies the correct answer.
Posted by Dagonee (Member # 5818) on :
Kat, as far as I know, they're only required to withhold from foreign students. Universities are probably well-equipped to do it and so just withhold for everyone. Private grantors probably are happy to avoid the hassle.
Dagonee
Posted by Shigosei (Member # 3831) on :
Hey, I'm doing an HHMI research program here at Oregon State! What they told us about our stipends was that we were responsible for paying the income taxes ourselves, but we don't have to pay social security.
Posted by dabbler (Member # 6443) on :
Oh, cool =)
*waves*!
What's the name of your program? You're not in med school, are you?
Posted by dabbler (Member # 6443) on :
I'm just curious if various portions of the stipend are excusable. As in, do I get taxed 100% for federal and state, or does someone out there exempt me from part of it or certain taxes?
Posted by Boon (Member # 4646) on :
It's 100% taxable income except for any portion used to pay school fees THIS YEAR. I'd prepay if you can.
The circus income is listed on a Schedule C (self employment income).
HTH
Posted by Dagonee (Member # 5818) on :
Well there you go - wait around Hatrack and get a real expert to answer your questions.
I love this place.
Dagonee
Posted by dabbler (Member # 6443) on :
Thank you =)
Posted by sarahdipity (Member # 3254) on :
Actually as graduate assistant or research assistant you are exempt from FICA and OASDI - medicare and social security. Thus if you are a grad student not on a "fellowship" but are getting paid by the school you should not be paying those taxes.
Also this year you will need to fill out a prepay schedule so that you are not required to pay the government interest owed if your fellowship runs another year.
Posted by rivka (Member # 4859) on :
quote: By the way, my wife . . .
*notices how deftly Dagonee slipped that in there* Posted by Suneun (Member # 3247) on :
Since my stipend is split half of 2004 and half of 2005, does that mean I'm only going to be declaring TotalStipend/2 in April, 2005 and TotalStipend/2 in April, 2006?
Cause that way, IRS calculator says I will end up owing 3.8% federal tax...
[ August 12, 2004, 11:32 PM: Message edited by: Suneun ]
Posted by Boon (Member # 4646) on :
You're only taxed this year on money you receive this year.
Medicare, etc. taxes...you're right sarahdipity. I forgot about that. It works the same way for people on work study IIRC.
Posted by Dagonee (Member # 5818) on :
quote:*notices how deftly Dagonee slipped that in there*
It rolls off the fingers quite naturally, now. If only I can get used to the wedding ring this quickly...
Pictures coming soon.
Dagonee
Posted by sarahdipity (Member # 3254) on :
Oh and when I say prepay schedule and this year. I mean when you file taxes for this year fill out a prepay schedule for next.
![[Big Grin]](biggrin.gif)