This question is about stipend vs salary.

Are stipends subject to taxes?

By Zippia Team - Dec. 7, 2022

Yes, stipends are subject to taxes. However, it's not taxed as income, meaning that the way that it's taxed is different for both the payer and payee. As it's not counted as a wage earned, no taxes are withheld from it, meaning that you will be required to pay that yourself on your taxes.

As it isn't considered a wage, you won't have to worry about income tax, especially as stipends also tend to be much lower than either wages or salaries.

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