Because stipends are awards and not wages for services, Social Security and Medicare taxes are not withheld. Stipends are still considered taxable income, though. It's important to note that recipients of a stipend are not self-employed so you don't need to pay self-employment taxes.

Are stipends supposed to be taxed?

Are Stipends Taxable? ... Because stipends aren't equivalent to to wages, an employer won't withhold any taxes for Social security or Medicare. But in many cases, stipends are considered taxable income, so you as an earner should calculate the amount of taxes that should be set aside.

Why is my stipend taxed?

Because stipends are awards and not wages for services, Social Security and Medicare taxes are not withheld. Stipends are still considered taxable income, though. It's important to note that recipients of a stipend are not self-employed so you don't need to pay self-employment taxes.