Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/3/83; site umcp-cs.UUCP Path: utzoo!watmath!clyde!floyd!harpo!seismo!rlgvax!cvl!umcp-cs!arnold From: arnold@umcp-cs.UUCP Newsgroups: net.college,net.taxes Subject: Re: tax status for TA's and RA's Message-ID: <4965@umcp-cs.UUCP> Date: Thu, 2-Feb-84 18:40:26 EST Article-I.D.: umcp-cs.4965 Posted: Thu Feb 2 18:40:26 1984 Date-Received: Wed, 8-Feb-84 03:14:09 EST Organization: Univ. of Maryland, Computer Science Dept. Lines: 44 The rules for teaching and research assistant stipends are loosely stated below: There is an official IRS publication on Stipends, Scholarships, and Grants. According to the IRS in order to have your assistantship stipends Tax-exempt you need: 1) Working towards a degree. 2) The work you are doing for your stipends is part of your work for the degree. 3) Everybody going for that degree has to do similar work whether they are paid to do the work or not. 4) The work your are being paid for is a serves to you not the paying agent. Most teaching assistantships will be considered to be taxable income, since they are a service to the school not to you. Most research assistantships can get tax-exempt status, one needs a letter from their department stating why they are tax-exempt. (This can cause havoc latter when income averaging or IRA filling). For teaching assistants there is some hope - one can claim only the taxable income that an equivalent student would get for teaching but not on an assistantship. Example: at the U of Md. a T.A. works 20 hours a week, the going rate of pay is $5.00 an hour for compatible work by the U.'s pay scale there for only $100 per week is taxable the rest is stipends to live on. This does not help much since U of Md. T.A.'s only make $140 per week but it helps. When filling your stipends or part of it as tax-exempt income you need a letter from your department as for the reasons why. There is not section on the IRS tax form for this type of exemption it has been recommend to use the Alimony line for your tax-exempt income and claim your entire w-2 income on the gross income line. -- - - -- --- -- --- --- -- --- -- -- -- --- --- - Arnold Miller, U of Maryland, College Park Md. UUCP: {seismo,allegra,brl-bmd}!umcp-cs!arnold CSNet: arnold@umcp-cs ARPA: arnold@maryland