Taxability of Stipends

Section 117 of the Internal Revenue Code applies to the tax treatment of scholarships and fellowships. Degree candidates may exclude from gross income (for tax purposes) any amount used for course tuition and related expenses such as fees, books, supplies, and equipment required for courses of instruction at a qualified educational organization. Nondegree candidates are required to report as gross income any monies paid on their behalf for stipends or any course tuition and fees required for attendance.

More information can be found in the UC San Diego Office of Postdoctoral Scholar Affairs Benefits/Tax website.

Where to Obtain Forms, Instructions And Publications

Federal (IRS):

Federal Tax Withholding Calculator at (enter “calculator” in Search IRS Site)

CA State:

Some IRS Publications that may assist you in filing your return are:
Publication 17 Your Federal Income Tax
Publication 505 Tax Withholding & Estimated Tax
Publication 970 Tax Benefits for Education.
Publication 521 Moving Expenses (moving expenses may be deductible, please consult your tax advisor)

This is not a comprehensive list. Please consult your tax advisor for more information.