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do gov't jobs not take off tax from your salary (isnt it like 1/3)
im an intern at nasa and they dont tax my stipend b/c the lady said that since this is the govt - that would be illegal

what about for city jobs and state jobs?

2007-03-26 17:14:50 · 5 answers · asked by Anonymous in Business & Finance Careers & Employment

5 answers

My boss is an astronaut, and they tax her wages. A stipend is different than actual wages, and is not taxed. It is like receiving car mileage allowance. I get that, and I am not taxed on it. Students receive stipends when they have student loans, and these are not taxed.

This is what a stipend is:

A stipend is a form of payment or salary, such as for an internship or apprenticeship. Stipends are usually lower than what would be expected as a permanent salary for similar work. This is because the stipend is complemented by other benefits such as accreditation, instruction, work experience, food, accommodation, and personal satisfaction. Universities usually refer to money paid to graduate research assistants as a stipend, rather than as wages, to reflect complementary benefits.

2007-03-26 17:18:21 · answer #1 · answered by Sparkles 7 · 0 0

Intern stipends may not be considered income. It may be something like reimbursement for work related expenses which is not taxable. Government workers pay at least Federal Income Tax on their wages.

Even the President of the US pays income taxes.

2007-03-26 17:21:15 · answer #2 · answered by Rainman 5 · 1 0

I work for the goverment and believe me when i say they tax you just like every one else. You may get discounts on some purchases but not much. I think a stipend is a little more different. That is like some sort of work study towards your education.

2007-03-26 17:20:23 · answer #3 · answered by suga 1 · 1 0

Unless it is a military job, you have to pay taxes.

2007-03-26 17:17:51 · answer #4 · answered by Anonymous · 1 1

yes they are free from tax

2007-03-26 17:17:10 · answer #5 · answered by Anonymous · 0 1

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