Are Stipends Taxable Income?

Stipends are taxable when they are for general living expenses. When it comes to stipends from a grantor, if the person has to perform duties to earn the stipend, then it is also taxable. Stipends are not taxable when they are applied to education-related expenses and college tuition.

Those getting a stipend that is taxable should get a Form W-2 from the payer or grantor by January 31 of the year following the year they got the stipend. When filing their taxes, the person needs to take this form and report their stipend in the full amount as a type of wage.