Taxes anyone??!!

[Guest guest]

I have a tax question most of us will be concerned with, sooner or later. The grad stipends are usually the minimum the universities would have to pay; substracting significant amounts from it would narrow my budget quite a bit.

For most grad programs students do not pay tuition or health insurance fees, the stipend is taxable.

Does anyone know how much one can expect to be taxed on, say 22'000/year? How much is the personal amount one can claim, and can we claim educational amounts if we do not actually pay anything in tuition?

I want to know in advance, so I can set some money aside in each paycheck, although I think the payroll will probably do the deductions. How much would they usually deduct? Any grad student knows and can answer this?

[rising_star]

This is highly variable. It depends on state taxes paid, student loan interest paid, and numerous other factors. I did a quick estimate and got that you'd pay $1655 in taxes but this could be reduced easily, especially if you took education credits or paid interest or plenty of other things.

Here are some links:

http://www.turbotax.com/tax_tips_and_re ... index.html

If you scroll down, there's a link to a bunch of calculators where you can estimate and customize to your situation.

Or just put "tax estimate calculator" into Google.

[Capriccio]

I emailed UCSD office and they said that there is a tax 10% for international students.

[Guest guest]

Thanks brittdreams and Capriccio. I am hoping taxes are about 1000-2000 too.

Capriccio, I guess that after the 10% tax, there'd be some deductions for educations credits etc.

[Guest guest]

Were the estimates you discussed (and the calculators on the link above for estimating tax) for just federal? Or federal + state? (i.e. does that guy face $1,000-2,000 for federal only? Or is that for federal+state?)

[rising_star]

Federal only since state taxes vary by state and even area within the state. Plus since the original poster didn't mention a state, there was no need for me to look that up.

And that does not include the automatic deductions for social security and medicare, if those are being taken out.

[Guest guest]

If the schools are paying the medicare, and possibly the social insurance, how does that figure out in the taxes?

I'll have to pay state taxes too, on top of the 1000-2000 federal tax. :-( So add another 1000 for me. Good to know in advance though.

Thanks brittdreams for the info.