Non-excludable stipends – Stipend payments are considered taxable income and are not excludable. However, amounts spent in the calendar year for fees, books, supplies and equipment that are required of all students enrolled in the course(s) in which the student is enrolled may be excludable.
California excludes unemployment compensation from taxable income.
Stipends are typically provided to those ineligible to receive a regular salary or wage in return for their services. Researchers, graduate students, clergy, interns and apprentices are common recipients.
Stipends are considered taxable income by the IRS if they don't belong in the pre-tax or non-taxable categories. Companies must list the benefits on employees' W-2 forms and withhold state and federal taxes ingly.
People who are Direct Support Professionals (DSPs) can receive up to two $625 (before taxes) stipends for completing approved training courses.
Cell phone reimbursement, like any type of reimbursement, is not considered income because it is not taxable. This is only true when an employee is being compensated for the use of a personal cell phone that is directly related to the successful completion of their work.