Is a Stipend Considered Earned Income for Tax Purposes?
Individuals relying on unearned income should consider alternative retirement savings strategies, such as IRAs or 401(k) plans, to offset potential gaps. Proper tax treatment requires understanding the stipend’s terms and conditions. Recipients should keep detailed records and consult resources like IRS Publication 970 for guidance on education-related stipends. For non-residents or international students, tax treatment can vary based on tax treaties between the recipient’s home country and the U.S. Some treaties may exempt stipends from taxation entirely or partially. Research fellowships, and grants received from universities may all be exempt…
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