AROTC and Taxes

Discussion in 'ROTC' started by Jcleppe, Feb 3, 2011.

  1. Jcleppe

    Jcleppe 5-Year Member

    Feb 10, 2010
    Likes Received:
    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 just have to roll with it.

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