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Minimum Enrollment
Students employed as graduate assistants and associates
are required to register for at least six units of
graduate credit per semester as a condition of their
appointments.
Petitioner paid tuition of $1,016 during 1992 to participate
in the graduate program.
The University issued petitioner a Form W-2 for 1992
reporting wages paid for the year in the amount of $15,845.50.
Petitioners included $15,846 in their wage income on their 1992
return and then deducted the same amount on line 22 of the return
to arrive at their total income for the year.
Petitioner contends that the $15,846 (rounded) he received
from the University in 1992 was a "stipend" excludable from
income pursuant to section 117. In particular, petitioner posits
the following:
Code Section 117 changed effective August 17,
1986, but Proposed Regulation 1.117-6(f)(3) provides
that in the event a person is receiving a stipend prior
to August 17, 1986 and continuously thereafter and
meets the condition of the prior Code Section 117
wherein his stipend would have been excluded from
taxable income, to the extent of the amount that was
being earned prior to 1987 the stipend would be
excluded from taxable income even though received after
1986. For the last six months of 1986 or from August
11, 1986 to December 31, 1986 or for one semester,
Schulze received $3,570.46 or $7,140.92 for two
semesters or a year. That Schulze was paid a stipend
as a graduate research assistant/associate continuously
from August 11, 1986 through December 31, 1992. That
his renewal of his contract each year was a mere
formality, was automatic and the form was placed in
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Last modified: May 25, 2011