<p>What is the midshipman stipend considered for tax purposes?
Trying to see if it needs to be included in 2008 tax return, when there was pre-USNA employment.</p>
<p>Yes, your mid should already have his w2 from the Academy and ready to do his taxes. All income during 2008 has to be reported just like the rest of us. Also, the income is the total pay, not just what he sees deposited in his bank account. I seem to remember that it was somewhere about $5300.00 for the six months.</p>
<p>Yes it is considered income for tax purposes, is reported on a W2 and must be reported on a tax return (If income is high enough to require filing a return).</p>
<p>from <a href="http://www.irs.gov/pub/irs-pdf/p970.pdf%5B/url%5D">http://www.irs.gov/pub/irs-pdf/p970.pdf</a>, page 7</p>
<p>
[quote]
Payment to Service Academy Cadets
An appointment to a United States military academy is not
a scholarship or fellowship. Payment you receive as a
cadet or midshipman at an armed services academy is pay
for personal services and will be reported to you in box 1 of
Form W-2. Include this pay in your income in the year you
receive it unless one of the exceptions, discussed earlier
under Payment for services, applies.
[/quote]
.</p>