Nerd Alert: Tax consequences of bar stipend

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nigelfrost
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Nerd Alert: Tax consequences of bar stipend

Postby nigelfrost » Fri Sep 23, 2011 9:58 pm

For those that have been given or are being given a bar stipend from your firm, do you know if this is usually given in one lump sum? Is it treated like a regular paycheck (i.e. taxes are withheld from it at the same W-4 rate as your summer associate checks)? Or is it treated as a gross amount that you then pay taxes on later?

Preemptive Notes: (1) While it might be logical to respond "It depends on the firm," in this case I can't imagine the firms vary all that much. (2) By "bar stipend" I do NOT mean a cash advance, a stub bonus, or a signing bonus.

Anonymous User
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Re: Nerd Alert: Tax consequences of bar stipend

Postby Anonymous User » Sat Sep 24, 2011 12:32 pm

How much do you normally get? Is it equal to a few months salary?

Anonymous User
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Re: Nerd Alert: Tax consequences of bar stipend

Postby Anonymous User » Sat Sep 24, 2011 12:48 pm

My firm explicitly stated that the stipend would be X amount minus taxes.

Anonymous User
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Re: Nerd Alert: Tax consequences of bar stipend

Postby Anonymous User » Sat Sep 24, 2011 5:17 pm

Anonymous User wrote:My firm explicitly stated that the stipend would be X amount minus taxes.

Was it equal to a certain # of month's salary?

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okinawa
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Joined: Fri Aug 19, 2011 4:45 pm

Re: Nerd Alert: Tax consequences of bar stipend

Postby okinawa » Sat Sep 24, 2011 9:13 pm

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Last edited by okinawa on Fri Apr 19, 2013 10:37 am, edited 1 time in total.

kahechsof
Posts: 332
Joined: Fri Aug 26, 2011 7:26 pm

Re: Nerd Alert: Tax consequences of bar stipend

Postby kahechsof » Sat Sep 24, 2011 9:28 pm

I wonder why the firm can't treat it as their own necessity (that is, they need their attorneys to be members of the bar), and then treat it as their own business expense, and not have it be taxable to you.
I guess it would be like CLE's, which I doubt are taxable to you.




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