Graduate student stipend

[FBN2007]

What is the name of your state (only U.S. law)? SC

A grad student has a scholarship and a graduate assistant stipend. He received a W2 for the stipend but no federal or state tax was withheld and no FICA taxes were withheld. Should taxes have been withheld? Is this income subject to FICA withholding?

 

[LdiJ]

What is the name of your state (only U.S. law)? SC

A grad student has a scholarship and a graduate assistant stipend. He received a W2 for the stipend but no federal or state tax was withheld and no FICA taxes were withheld. Should taxes have been withheld? Is this income subject to FICA withholding?

Believe it or not, that is completely normal for those kinds of work study jobs.

 

[FBN2007]

Believe it or not, that is completely normal for those kinds of work study jobs.

You didn't answer the question. Is the income taxable for federal, state, and FICA taxes. If FICA taxes are due, what forms do you use to figure the tax and report it?

 

[LdiJ]

You didn't answer the question. Is the income taxable for federal, state, and FICA taxes. If FICA taxes are due, what forms do you use to figure the tax and report it?

It is subject to federal income tax, but not to social security or medicare taxes. Whether or not it is subject to state income tax depends on state law. Generally however, the amounts earned are small enough that unless the student has other, outside employment, they don't end up owing any tax anyway.