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Nerd Alert: Tax consequences of bar stipend

Posted: Fri Sep 23, 2011 9:58 pm
by nigelfrost
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.

Re: Nerd Alert: Tax consequences of bar stipend

Posted: Sat Sep 24, 2011 12:32 pm
by Anonymous User
How much do you normally get? Is it equal to a few months salary?

Re: Nerd Alert: Tax consequences of bar stipend

Posted: Sat Sep 24, 2011 12:48 pm
by Anonymous User
My firm explicitly stated that the stipend would be X amount minus taxes.

Re: Nerd Alert: Tax consequences of bar stipend

Posted: Sat Sep 24, 2011 5:17 pm
by Anonymous User
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?

Re: Nerd Alert: Tax consequences of bar stipend

Posted: Sat Sep 24, 2011 9:13 pm
by okinawa
.

Re: Nerd Alert: Tax consequences of bar stipend

Posted: Sat Sep 24, 2011 9:28 pm
by kahechsof
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.