taxes and ROTC $300/month income

Discussion in 'ROTC' started by philmont, Apr 7, 2012.

  1. philmont

    philmont Member

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    quick question: I just want to be sure that the $300 per month that my MS I son receives for his scholarship is NOT taxable income, right? (He never received a W2 or 1099 form.)
     
  2. NorwichDad

    NorwichDad Member

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    Yes

    W-2 and 1098 T. I am sending you a PM
     
  3. NorwichDad

    NorwichDad Member

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    Yes

    I mean taxable
     
  4. Pima

    Pima Parent

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    It is considered an allowance at least by the AF. (300 a month), anything that is an "ALLOWANCE" is exempt from being taxed. Even in the AD world, that is not taxable income. DS didn't get a W-2 from the AF until he went to summer training, even though he was scholarship and had stipends prior to that yr.
     
  5. NorwichDad

    NorwichDad Member

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    My son's, Army, has withholding taken?
     
  6. NorwichDad

    NorwichDad Member

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    oops


    I think the withholding was for DOD income for other than stipend.

    Sorry
     
  7. philmont

    philmont Member

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    Yes, I think so. I found this below on Penn state ROTC website and Pima is right and it is considered a "stipend":

    There are many scholarship opportunities available through Army ROTC. There are two, three and four year scholarships available. Students in high school may want to learn about and apply for the Army ROTC four-year scholarship. The scholarship can cover up to full tuition, as well as paying mandatory fees, an allowance for books, and a monthly non-taxable stipend.
    :thumb:
     
  8. EDelahanty

    EDelahanty Member

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    If room and board is provided, it is considered taxable income (though I don't know if this is also true of service academies).
     
  9. The OC Josh

    The OC Josh Member

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    For AROTC

    According to my HR person, Stipend is not taxable.
    However, LDAC Pay, Airborne Pay, CLIP-B, etc is taxable.
     
  10. NorwichDad

    NorwichDad Member

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    That is correct. Looking at the numbers though, one thing is obvious.

    "You'll never get rich / by digging a ditch / you're in the Army now!"
     
  11. EDelahanty

    EDelahanty Member

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    Furthermore, "Oh, the Navy gets the gravy but the Army gets the beans."
     
  12. cb7893

    cb7893 Member

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    Reviving this thread

    It is getting to be about time for the theme to change from scholarships to tax questions.

    I just got mine answered by doing a keyword search "taxable". Specifically. I was looking for tax treatment of CLIP-B payments. It took all of 20 seconds to get my question answered.

    P.S. Would recommend to all, especially newbies, to search first and ask questions later. Pima, Kinnem, Norwich have a finite number of keystrokes in them.
     
  13. kinnem

    kinnem Moderator

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    Yes. I only have 35 key strokes lef
     
  14. marciemi

    marciemi USMA Alumnus

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    Where's the like button when I need it? :wink:

    Thanks for pulling it up - I was wondering this as well.
     
  15. danbucchin

    danbucchin Member

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    is the stipend and book allowance only paid to cadets on scholarship?
     
  16. EDelahanty

    EDelahanty Member

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    ROTC cadets admitted to the advanced course (beginning with the MS3 or third year) will receive the stipend whether scholarship or not. The monthly stipend is $450 in the third year.
     
  17. -Bull-

    -Bull- Member

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    If you're contracted, you're getting paid.
     
  18. dunninla

    dunninla Member

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    Contracted: A cadet signs a Contract upon validating their scholarship (4 Yr. scholarship pass the APFT the 2nd day of the school year, 3 Yr. Scholarship awardees on the second day of Sophomore year) Cadets who did not earn the High School or In College scholarship sign the Contract, upon approval, at the beginning of Advance Course, which is the start of Junior year in college.

    No Contract, no Money.
     
  19. Aglahad

    Aglahad Member

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    On a side notes cadet pay at training (which is taxable) is around $25 a day or at least it was when I was at CTLT and LDAC. Enjoy!
     

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