AMT on stipend?

General Discussion for SMART Scholarship Recipients
AMTWhy

AMT on stipend?

Post by AMTWhy »

Are you guys getting taxed 26% on your stipend due to AMT?

Guest

Re: AMT on stipend?

Post by Guest »

I also have this question regarding AMT.

My CPA just worked through the taxes and said it appears that the AMT will apply, but will be doing more research to see if there is something she is missing that keeps the AMT from kicking in. AMT make about a $4000 difference in tax obligation. Yikes!

Does anyone have and credible advice on whether or not the AMT should be applied? If it is not applies how is the stipend being reported on the 1040?

Thanks

CSMajor

Re: AMT on stipend?

Post by CSMajor »

Guest wrote:I also have this question regarding AMT.

My CPA just worked through the taxes and said it appears that the AMT will apply, but will be doing more research to see if there is something she is missing that keeps the AMT from kicking in. AMT make about a $4000 difference in tax obligation. Yikes!

Does anyone have and credible advice on whether or not the AMT should be applied? If it is not applies how is the stipend being reported on the 1040?

Thanks

I had AMT on my stipend and paid it. My CPA said that the law was supposed to be changed this year, but wasn't. Time to bite the bullet

SMARTgirl

Re: AMT on stipend?

Post by SMARTgirl »

How can AMT apply? I thought our stipend wasn't considered income because we are not employees?

CSMajor

Re: AMT on stipend?

Post by CSMajor »

SMARTgirl wrote:How can AMT apply? I thought our stipend wasn't considered income because we are not employees?
That’s the point of AMT — to close the loophole.

SMARTgirl

Re: AMT on stipend?

Post by SMARTgirl »

Okay, but isn't the exemption amount $70,300 if you're single? The scholarship pays significantly less than this... Are tuition costs and internship support payments factored in as well?

SMARTgirl

Re: AMT on stipend?

Post by SMARTgirl »

I'm only asking because this is my first year with the scholarship and I'm trying to calculate my estimated quarterly taxes.

CSMajor

Re: AMT on stipend?

Post by CSMajor »

SMARTgirl wrote:I'm only asking because this is my first year with the scholarship and I'm trying to calculate my estimated quarterly taxes.
I'm just going by what my CPA told me.

All things considered, I had around 39,000 this year with stipends and everything -.. I ended up paying $6000 between federal and state (12% for federal and like 3-4 for state). It was still within the range of what I was expecting.

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