The purpose of this series is to examine the lies or rumors about taxes that grad students frequently hear from their peers or family and friends. There is a lot of tax misinformation floating around universities, which ultimately be damaging to grad students who believe it if it causes them to file inaccurate tax returns. Sometimes a lie will be true for a subset of graduate students but not true for another subset, depending on how they are paid, which adds to the confusion.
‘Lie’ is of course a strong term, and I’m using it a bit tongue-in-cheek. You might call them not-quite-true statements from well-intentioned people! Virtually all of these tax lies arise from someone applying their understanding of other parts of the tax code – accurate or inaccurate – to grad student income and particularly non-compensatory income. In the cases you’ll read about in this series, the logic unfortunately does not transfer to the (sometimes) special case of grad student income.
The lies covered in this series are:
If you have another (possible) lie you would like to see in the series, let me know through social media or email (email@example.com). This series is an expansion of Tax Lies Told to Graduate Students on Evolving Personal Finance.
We at Grad Student Finances are not tax professionals, and none of the content in this section should be taken as advice for tax purposes.