The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Tax Strategies for Alien Grad. Student! Date:  7/9/1998  12:36 PM
Author:  Canuck73 Number:  4381 of 127636

If anyone could help me with this unique tax situation, that would be great!

I am a nonresident alien, attending a private graduate school in the U.S. The school provides full tuition funding and a stipend to cover one's living expenses. We aren't required to do extra work (like teaching assistantships) to ge the stipend, it is automatic with admission.

So, at the end of every month, I get a check for the stipend. No taxes, medicare, anything are taken out of it (except for a student activity and parking fee). The school for some reason does not report this to the IRS via some legal loophole. Therefore, we get no W-2 for tax purposes.

I'm a full-time student and take in no other income. On the 1040NR (non resident) tax form, there is a unique line where it asks how much was received in scholarships and fellowships. I have no choice but to report. Many of my US classmates, however, do not such line on the regular 1040.

I believe that the stipend is fully taxable, but we all debate this. Anyone know for sure?

Should I be paying my taxes out over the year or will I be penalized if I pay one "lump sum" in April (ouch!).

Thanks in advance!
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us