Are Stipends Typically Taxed?

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According to the Internal Revenue Service, stipends are typically taxed. Even though a payment or remuneration may be classified as a stipend or other type of fee, it must still be reported as wages or income on an individual’s tax return.

Stipends are generally defined as payment of a fixed sum of money paid on a set time period or basis to offset expenses or for certain services rendered. Examples of stipends are those paid on a daily or weekly basis for meal expenses, or those paid on a weekly or monthly basis for a housing allowance. Individuals receiving stipends should report them on their W2 form every year.