Taxes....

Discussion in 'ROTC' started by Megan'sMom-Okla, Jan 8, 2016.

  1. Megan'sMom-Okla

    Megan'sMom-Okla Member

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    My DD was the proud recipient of a 4-year NROTC scholarship.... She is thriving and loves it to the core. She is considered to be in the Navy Reserves and draws a small paycheck from the Navy twice a month. My question is: She is 19 and will receive a W-2 from the Navy. Does she file her own taxes? If she does, does that mean we can no longer claim her on our taxes?
     
  2. nofodad

    nofodad Member

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    If you're referring to her stipend I believe that is non-taxable, if she has other income she will have to declare it, but no the $ from the stipend.
     
  3. AROTC-dad

    AROTC-dad Just a dad

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    Generally ROTC scholarship funds are not taxable unless applied to room and board.

    Here is the IRS position on stipends:

    "ROTC Students Subsistence allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable."

    Source: https://www.irs.gov/uac/Special-Tax-Benefits-for-Armed-Forces-Personnel

     
  4. Megan'sMom-Okla

    Megan'sMom-Okla Member

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    Great, thanks for the rapid replies!
     
  5. Day-Tripper

    Day-Tripper Member

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    She can file her own 1040/1040A/1040EZ tax return and probably get a tax refund (her basic standard deduction is $6200) if she had any federal income taxes withheld from wages --- and you can still claim her as your dependent.
     
  6. kinnem

    kinnem Moderator

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    They do receive a small amount of amount of active duty pay while on cruise,but unless she has other income it will be too little to required filing.
     
  7. AROTC-dad

    AROTC-dad Just a dad

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    +1 Kinnem for AROTC AD pay received during summer training.
     
  8. nofodad

    nofodad Member

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    DS had taxes withheld during CULP and CLC. That was his only taxable income for the year I believe he got everything withheld back.
     
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