<p>I was wondering if, at schools where there was campus housing provided to graduate students, housing costs come out of the stipend before or after taxes. This could make a significant difference in available spending money. My mom claims that her co-worker's son had his housing taken out before taxes, but I can't find much information on this and the graduate students in my lab who live on campus actually have no idea. This is especially important in high-cost, high-tax areas, where I seem to have found many of inteviews. Thanks!</p>
<p>I think the tax status of students in general is a good thing to think about. At the University where I work now the school pretty much avoids giving the students any information about tax status, which I know because the students complain heavily in march and april since no one seems to know what they’re doing. In any case, this school’s grad housing is run pretty much like any other property management company. My friend who lives in grad housing says he just mails a check in at the beginning of the month straight from his checking account. I don’t know in general though, maybe other schools are different.</p>
<p>With some very limited exceptions (e.g., living in an undergraduate dorm as a Resident Head), any housing or housing assistance provided will be taxable.</p>
<p>In MOST cases, your stipend is actually not taxed by the school. You have to remove the taxes yourself from your income and save it up to pay it in April (or make estimated payments). The only way that it’s taxed is if you are doing salary work that’s over a certain amount and you are actually employed by the school. My first two years my training grant was contingent on employment with the school as a GRA and so that was taxed. Now I am on NSF and while that is taxable, it’s not taken out by the school so I’m supposed to figure it out myself.</p>
<p>MOST universities that have graduate housing also do not subtract your housing from your stipend. You have to pay it yourself, just like you would any other rent. That’s the way it works here - your stipend is deposited in your checking account every month and then you pay your bills from that. (If you’re on an external fellowship they discharge that in three huge lump sums, so you get the fun of managing $10,000 for 4 months and such like that.)</p>
<p>Essentially, then, your stipend is taxed BEFORE the housing cost, because you have to save whatever you owe Uncle Sam out of your check and then figure the rest.</p>
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For some reason unbeknownst to me, my school does not withhold money from my stipend, but did withhold money from my teaching salary this semester. Just what I need to make doing my taxes even more of a confusing nightmare.</p>
<p>that;s okay-- my school randomly started taking money out of our stipends in september-- none of my classmates noticed until about december when we were wondering where all of our money went. Next september they will stop taking money out, so I don’t actually get a year where I don’t have to pay estimated taxes. And, like mollie, they are sure to take money out of TA salaries. UGH!</p>
<p>Another data point for your consideration- my program deducts taxes from my stipend just as if it were any other job. During the last week of January, I receive a W2 reflecting my withholding’s and payments to state and federal for the year. Last year, they withheld exactly the right amount- I owed less than twenty bucks on the year. If some miracle occurred and I ended up in a higher tax bracket, I could adjust my withholding amounts using a form available from HR.</p>
<p>On a separate note, you might be happy to find that you don’t have to pay FICA taxes on a stipend. If social security were still around when we retire, this would be problematic, but I’ll take my chances. </p>
<p>One more point, some of the schools for which I interviewed were in states with no state income tax eg. Texas and Tennessee, effectively boosting your pay by 3-9 percent.</p>
<p>At least your schools haven’t randomly dropped your direct deposit with no warning multiple times.</p>
<p>(Though I’ve also had the fun you guys are talking about with them withholding taxes. I asked them at one point to do it, and they said it’s their policy not to withhold since paying my taxes isn’t their concern. Gee, thanks.)</p>