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Our company has a program offered to students from ages 13 to 18 called "Learn and Earn". Qualified students attend various training sessions on different topics and once completed them are given stipends for their attendance and participation. Some students attend more than one session which their stipends could go over $600. Are these stipends reportable on 1099-Miscellaneous as Other Income? |
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The stipends would seem to be taxable income. But as the students are earning it for working, I think it would belong in Box 7 as Nonemployee Compensation, not Other Income. The training classes are probably not a taxable benefit. Much of this result depends upon the facts and circumstances, including whether your company is a non-profit organization which you did not indicate. We are a non-for-profit organization. The "Learn and Earn" program is offered to students who are also residents of public housing. As incentive for their attendance on the training courses; they are given stipends. Important to note, they are not working for our organization.
(26 Jul '11, 14:13)
amendoza
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