To what extent is graduate stipend (GTA) Taxable for an International student in the US

[atmaero]

Hello !

I am an international student and Will be attending the Ohio State University coming Fall for my PhD.

i have secured a TA and will be getting a Stipend of $1650 p.m

How much of this income is taxable..... Will I be taxed both by the Federal and/or State govt.?And how about the Tax laws of Ohio for an international grad who establishes residency in a year.. would I need to pay lesser?

Any views on this would be appreciated!!!!!!!!!

thanks

[runonsentence]

Not sure if internationals pay taxes differently, but stipends are taxable by federal, state, and city governments, just like any other income. (Fellowships and scholarships—such as tuition remission—are not taxed.)

However, you'll be in a low tax bracket, and as a student you'll be able to deduct your education expenses (see: http://www.irs.gov/pub/irs-pdf/p970.pdf).

[atmaero]

Not sure if internationals pay taxes differently, but stipends are taxable by federal, state, and city governments, just like any other income. (Fellowships and scholarships—such as tuition remission—are not taxed.)

However, you'll be in a low tax bracket, and as a student you'll be able to deduct your education expenses (see: http://www.irs.gov/p...rs-pdf/p970.pdf).

Thank you! the link you gave was very useful.!!

[Jmews]

Has anybody got any first hand experience in claiming education expenses. For example, I have an Ipad that I use almost purely for reading journals/books. Can I claim this? I suppose I should also be keeping all printing expenses etc.

[runonsentence]

Not sure, I've only ever claimed books. My Dad does my taxes for me (ah, the benefits of having an accountant in the family), but I believe that educational deductions max out somewhere much lower than an iPad anyway.

[Timshel]

My husband and I do our taxes through TurboTax, and the form says that graduate students cannot deduct expenses like books--it specifically says it is reserved for undergraduate students.

[Eigen]

The IRS Publication on Scholarships and Fellowships says that fees, tuition, and "required" items are valid deductions. Required means it's actually required for the course. Books are the only usual things that count here.

[Timshel]

The IRS Publication on Scholarships and Fellowships says that fees, tuition, and "required" items are valid deductions. Required means it's actually required for the course. Books are the only usual things that count here.

Idk. All I know is on turbo tax it asks if you are an undergraduate or graduate, and when you say graduate, and try to click on the link where you put in the amount for books, a message comes up and says only undergraduates are eligible for books deductions. It quotes something from the tax booklet stating that the deduction is only eligible for undergraduates. All I know is what the program tells me, and TurboTax is a recommended program from the IRS. It's linked on the IRS website. Again, all I know is what the program tells me.

Edited October 29, 2011 by Timshel

[Jmews]

You think there'd be some kind of break in there for us. It seems like nearly every dollar I spend has something to do with school!

Still getting to grips with the tax system here. Thanks for the help!

[darlindukkie]

Hi Atmaero,

Most nations have tax treaties with the U.S. that stipulate the rates at which you'll be taxed. You will have the option of electing or opting out of the tax treaty. Chances are that Ohio State has a tax manager or graduate division contact that specializes in taxation for nonresidents, and they may be able to provide specific guidance for you. International taxation really depends on lots of factors, including which country you are from.

I think this is may be a good resource for you: http://controller.osu.edu/pay/pay-nrafaqs.asp

[darlindukkie]

Not sure if internationals pay taxes differently, but stipends are taxable by federal, state, and city governments, just like any other income. (Fellowships and scholarships—such as tuition remission—are not taxed.) However, you'll be in a low tax bracket, and as a student you'll be able to deduct your education expenses (see: http://www.irs.gov/pub/irs-pdf/p970.pdf).

For both international and domestic students, the term "stipend" isn't one the feds recognize - mostly because schools use the term differently. Sometimes stipends are actually employment related, and therefore should be considered "income". Other times stipends are actually just fellowships/scholarships with a different name. With that being said, consider the nature of the stipend to determine how it will be taxed.

If it's income, then it'll be taxed as all of your other income is taxed.

If it's a fellowship, the taxability of a fellowship/stipend will depend on what the money is spent and awarded for (see the table on page 4 of the link). I'm not sure how that differs for international students.

Edited February 11, 2012 by darlindukkie