I just thought I would relay a bit of information after talking with my MS3 son. Last semester he took an Arabic Language Class. The class was 4 credits plus 1 credit for the language lab. The total, 5 credits. All the forms were filled out and their amazing admin person made sure everything was submitted. There were about 4 cadets that took language classes that fell under CLIP. About 3 days ago he received money into his account in the amount of $1026.00 He thought this was an odd amount since it was the same date he was to get his stipend. Today he received a tax statement showing the CLIP as $1250.00 and The Stipend as $225.00 added together for a total of $1475.00. They took out $346.00 for federal Tax and $96.00 for State Tax. The state tax seemed odd since he is attending an out of state university and is not a residence of that state, still need to figure that one out. When he talked to the Admin person he said that because the total paid at one time was over $1000.00 it now becomes taxable. Normal stipend amounts will not be taxable. So...a word of warning to any cadet doing CLIP or any other program that pays you. If a total payment is over $1000.00 at anytime be prepared to have taxes taken out. In the end it is not that big of an issue since he will get it all back as a tax refund, it just came to him as a surprise. I just thought I would share this for anyone out there that might find themselves in the same situation. Always something new....you just have to roll with it.