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Tax Question - Grad Assitant
Posted on 2/9/15 at 12:11 pm
Posted on 2/9/15 at 12:11 pm
Quick tax question, I hope.
Long story short, wife is a GA (school pays tuition & cash each month) and I did not look at her check stubs throughout the year.
University is paying her a monthly check and in this check they are also including other gross taxable income. This other amount looks to be equivalent to the cost of her tuition & etc. Needless to say the other amount is about the same as her net pay. So her gross income at EOY was double than I was anticipating....
Questions:
1. Is the accurate reporting on the university side?
2. Anyway the tuition portion can be tax exempt?
Looks like I will be changing her W-4 to cut her net pay in half to be sure the taxes are covered.
Long story short, wife is a GA (school pays tuition & cash each month) and I did not look at her check stubs throughout the year.
University is paying her a monthly check and in this check they are also including other gross taxable income. This other amount looks to be equivalent to the cost of her tuition & etc. Needless to say the other amount is about the same as her net pay. So her gross income at EOY was double than I was anticipating....
Questions:
1. Is the accurate reporting on the university side?
2. Anyway the tuition portion can be tax exempt?
Looks like I will be changing her W-4 to cut her net pay in half to be sure the taxes are covered.
1
Posted on 2/9/15 at 12:20 pm to Drilltiger
If she is a teaching or research GA, it should be exempt. If she is some other kind of GA, anything over $5250 is taxable
Posted on 2/9/15 at 12:27 pm to LSUFanHouston
Thansk for the quick reply.
Not teaching, no sure if she is classified as research but I'll check.
What IRS section can I search to reference the $5250 non taxable? It seems turbotax is treating everything as gross income and taxing the entire sum.
Not teaching, no sure if she is classified as research but I'll check.
What IRS section can I search to reference the $5250 non taxable? It seems turbotax is treating everything as gross income and taxing the entire sum.
Posted on 2/9/15 at 12:41 pm to Drilltiger
Did you receive a 1098-T from the school? It should report amounts she paid as tuition and any scholarships/grants she received. If she got a W-2 from the school that reported all payments to her as taxable, then you should be entitled to claim a deduction for the tuition she paid. That should put you in the same place as if the school treated some of her compensation as non-taxable.
Posted on 2/9/15 at 12:48 pm to Drilltiger
127 sets the threshold of $5250, it's a qualified educational assistance plan
117 sets out a full exemption for tuition waivers of grad students involved in teaching and research activities.
Also look at pub 970
There probably is a code that needs to be put into TT.
Also, the amounts she is taxed on, she may be able to also use for educational credits and deductions.
117 sets out a full exemption for tuition waivers of grad students involved in teaching and research activities.
Also look at pub 970
There probably is a code that needs to be put into TT.
Also, the amounts she is taxed on, she may be able to also use for educational credits and deductions.
Posted on 2/9/15 at 4:05 pm to Poodlebrain
Yea I guess I need to look at this closer. 1098-T and her W-2 seem be accounting for the same dollars. SO i guess I need to make sure turbo tax is treating the tuition deduction correctly to offset it.
Posted on 2/13/15 at 9:17 pm to Drilltiger
My son is a grad assistant as well ... the 1098T shows an amount in the scholarship and grant box that equals his spring semester of TOPS and grad school tuition from the fall (year 2014 obviously).
The w2 shows box 1 wages, tips other compensation his TUITION PAID by LSU as well as his "salary" that he received. Federal income tax was withheld on all of it while SS & Medicare were withheld from the "salary" part.
Is that right? Federal taxes withheld from the "compensation" (tuition) AND wages? Does he need to do something? I'm assuming this is standard and he should get a refund ... he needs to definitely adjust his witholdings.
The w2 shows box 1 wages, tips other compensation his TUITION PAID by LSU as well as his "salary" that he received. Federal income tax was withheld on all of it while SS & Medicare were withheld from the "salary" part.
Is that right? Federal taxes withheld from the "compensation" (tuition) AND wages? Does he need to do something? I'm assuming this is standard and he should get a refund ... he needs to definitely adjust his witholdings.
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