tax question

Discussion in 'ROTC' started by tomjackson, Apr 6, 2015.

  1. tomjackson

    tomjackson New Member

    Joined:
    Apr 6, 2015
    Messages:
    1
    Likes Received:
    0
    My AROTC son in freshman year was paid $300 per month this past fall. Did not receive 1099 or W-2. Is that because it is a "stipend" or did we miss something in the mail as far as tax form? Thank you.
     
  2. cb7893

    cb7893 Member

    Joined:
    Dec 6, 2011
    Messages:
    1,061
    Likes Received:
    379
    If I'm not mistaken, the monthly stipend is not taxable. Further, W-2's are not sent out. They must be retrieved from something called "My Pay".
     
  3. kinnem

    kinnem Moderator

    Joined:
    Oct 21, 2010
    Messages:
    7,544
    Likes Received:
    1,005
    Yes, he did not receive this because it is a stipend and is not taxable. WooHoo!
     
  4. Pima

    Pima Parent

    Joined:
    Nov 28, 2007
    Messages:
    12,807
    Likes Received:
    945
    His stipend is not taxable, but if he used the ROTC scholarship to pay R & B than that is.

    Also beware if he does training during the summer that is not a stipend and will be taxable next year.
     
  5. EDelahanty

    EDelahanty Member

    Joined:
    May 7, 2010
    Messages:
    1,273
    Likes Received:
    312
    If he's getting the (non-taxable) monthly stipend, that would mean he has contracted. If he has contracted as a freshman, that would mean he was awarded a scholarship. If my assumptions are correct, I'm wondering why he didn't receive a tuition statement (Form 1098-T) from his school.
     
  6. paradoxer

    paradoxer Member

    Joined:
    Nov 17, 2010
    Messages:
    503
    Likes Received:
    5
    The 1098-T is probably an electronic document that can be accessed through the college's website - if you know where to look. And remember the 1098-T usually reflects the academic year not the calendar year, thus you must "do the math" to see if it reflects accurate information for the tax return.
     
  7. sheriff3

    sheriff3 Member

    Joined:
    Jan 14, 2013
    Messages:
    999
    Likes Received:
    318
    Also book money is not taxable either. Many cadets have been very creative in how they use that money to genterate some extra spending $. Like PIMA said summer training is paid and considered taxable. For AROTC AA, AB, CULP, CIET, CLC, PROJECT GO would all fall into this catagory. Lastly some schools offer scholarships outside the ROTC program and these may or may not be taxable.
     
  8. kinnem

    kinnem Moderator

    Joined:
    Oct 21, 2010
    Messages:
    7,544
    Likes Received:
    1,005
    We never got one either. I always just assumed it was because we weren't paying tuition, Navy was.
     
  9. Wilco

    Wilco Member

    Joined:
    Nov 24, 2014
    Messages:
    199
    Likes Received:
    124
    Understanding is such monies if used for room and/or board are taxable, and that is an IRS policy that should be changed. The Congress over the years has allowed the middle class to be crushed in the area of higher education, and that is a topic for itself. A little tweaking like that should not be a hard issue. Not asking for "free education at community college" or to any college, just not having to go into perpetual debt (have four children). Like most here on this forum son worked incredibly hard to get AROTC scholarship, and to expensive private school. School gave him very nice scholarship that will cover room and board but that will be a taxable event. Son also knows the AROTC is more like a loan and he will pay it back with time in service. Just saying taking care of little things can go a long way.
     
  10. kinnem

    kinnem Moderator

    Joined:
    Oct 21, 2010
    Messages:
    7,544
    Likes Received:
    1,005
    I don't mean to take this too far off topic, but folks without scholarships are paying income taxes on the money they use for room and board, which is in part, where I think this comes from. The other source is that folks who attend commuter schools are covering their own room and board, and whether you go to college or not you need to support yourself or have someone support you. I don't think this is a simple tweak. Any change here would need to apply to the entire population.
     
  11. sheriff3

    sheriff3 Member

    Joined:
    Jan 14, 2013
    Messages:
    999
    Likes Received:
    318
    Our CPA just gave me back our taxes on Friday, turns out the only piece of info we were missing was the 1098-T, once we provided I don't believe it changed anything at all and is just a pass-through document. I am usually on top of things like this but our tax code totally baffles me to the point I choose to stay ignorant and just pay a professional.
     

Share This Page