Stipend Pay

[JBG1964]

My son is recently contracted and just now received his first stipend pay. Question: Are the Cadet's issued an LES or other form of pay slip? I am trying to educate my son on finances, including allotments from the pay check to investments.

 

[CuriousMid1001]

My son is recently contracted and just now received his first stipend pay. Question: Are the Cadet's issued an LES or other form of pay slip? I am trying to educate my son on finances, including allotments from the pay check to investments.

In my experience, my stipend comes as a direct deposit. No LES, etc except when on summer cruise.

 

[JBG1964]

In my experience, my stipend comes as a direct deposit. No LES, etc except when on summer cruise.

Thanks. I think that the stipend is not considered income and therefore not taxed. Is there anyway to do an allotment before the pay hits your account?

 

[kinnem]

Thanks. I think that the stipend is not considered income and therefore not taxed. Is there anyway to do an allotment before the pay hits your account?

That's correct. The stipend is not treated as income. Don't know about an allotment before the pay hits the account. Of course, being disciplined to save after the pay hits the account is a good life skill too.

 

[CGA applicant 2024]

I was not aware stipends were not taxable, what part of ROTC funding is taxed? My tuition payments go straight to the school as a sponsorship, and I would assume the book money is not taxed?

 

[ProudDad17]

Your tuition payments and any stipends are not taxed. Any pay you receive while considered active duty for summer training is considered income and is taxed.

As an aside, this is also the beauty of BAH once you commission. BAH is a stipend and is not taxed, lowering your taxable income considerably.

 

[kinnem]

And to expand on ProudDad17, if you are in AROTC, and take the scholarship funds in the form of room and board, then that money IS taxable.

 

[tango_hotel]

I'm pretty sure you have access to a LES on MyPay.

 

[NJDadofDSUSMA2024Hopeful]

Hi all. So to summarize (please confirm):
tuition and fees: not taxed
stipend during the school year: not taxed
stipend during summer training: taxed
room and board benefits, whether by ROTC or school: taxed

Is that correct?

 

[kinnem]

Hi all. So to summarize (please confirm):
tuition and fees: not taxed
stipend during the school year: not taxed
stipend during summer training: taxed
room and board benefits, whether by ROTC or school: taxed

Is that correct?

Yes, except summer training is referred to as pay, not stipend, which is what makes it taxable. There is no stipend in the summer months.

 

[Humey]

CPA here

Stipend not taxable. Scholarships arent taxable as long as the money goes for tuition. Sometimes at least for those who arent in rotc, when the student get scholarship money, some of it is sometimes used for room and board. If scholarship money is used for that, that portion becomes taxable.