Questions about funding

[ejuliast]

Now that I have one acceptance...I can start thinking about funding and other things! Yay! I have three questions...I was hoping that someone on here might have some insight.

One stupid question: how are graduate stipends/fellowships taxed? (Does it matter if they are paid out over 12 months or over the academic year only?)

One semi-stupid question: do schools ever pitch in with moving expenses? Is that something I can ask about, or is that never done (and therefore just rude)?

And one question for more information: how can I find out which schools will cover health and dental for my family (husband and son)? I know that will likely cost me extra, but I know some schools don't offer it at all. Would I have to ask the school personally or is there a web site or other resource that covers this kind of info?

Thanks!

[rising_star]

Doesn't matter how they're paid out (other than for personal budgeting purposes). They are taxable income unless used to pay tuition. Stipends usually have the taxes taken out by the university. Fellowships may or may not. You'll owe city, state, and federal tax as applicable.

No, they don't pitch in with moving expenses. That only happens when you get a "real" job.

[gracieh]

From what I understand, stipends are taxed while fellowships are not taxed. For example, I have a fellowship and my school does not take taxes out of my monthly fellowship payment. However, when I had a TA position with a stipend, it was taxed.

Also, health insurance for your family depends on your institution.

As for moving expenses, that also depends on your school and department. A friend of mine received $1000 reimbursement for moving expenses during her first year in grad school.

[rising_star]

gracieh, just because your school doesn't take taxes out of the fellowship doesn't mean you don't owe them. Trust me.

From the IRS (http://www.irs.gov/publications/p970/ch01.html):

"A scholarship or fellowship is tax free only if:

* You are a candidate for a degree at an eligible educational institution, and

* You use the scholarship or fellowship to pay qualified education expenses.

...

Qualified education expenses. For purposes of tax-free scholarships and fellowships, these are expenses for:

* Tuition and fees required to enroll at or attend an eligible educational institution, and

* Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction.

However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses."

[dragynally]

I'm sure gracieh is trying to help by relating their personal experience. Trust me I appreciate it. I think you should take a quick look at your schools New students FAQ. They sometimes have answers to things like these. Also taxing changes from state to state. Sorry I can't be more helpful.

[gracieh]

I pay my taxes quarterly, so I'm cool. Some people get really exited about having a little extra $$ each month and get scared when tax season rolls around.