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From: warren@ihnss.UUCP
Newsgroups: net.taxes
Subject: Re: Social Security Tax on a Scholarship ?
Message-ID: <1887@ihnss.UUCP>
Date: Tue, 24-Jan-84 09:20:29 EST
Article-I.D.: ihnss.1887
Posted: Tue Jan 24 09:20:29 1984
Date-Received: Fri, 27-Jan-84 07:02:10 EST
References: <324@houxj.UUCP>
Organization: AT&T Bell Labs, Naperville, IL
Lines: 18

A friend of mine once had this problem.  She was paid by her school
for teaching, but for her program this was a mandatory activity, and
thus the payment was considered a scholarship, not salary.  The
school, however, paid lots of TA's who were just hired help, so they
withheld taxes and social security from it.  As I recall, she had to
get some sort of signed statement from the school to the effect that
the payment was a scholarship and the withholding was their error
and file it with her tax return, claiming over-witholding of social
security as a credit.  It seems likely that in the case of a company
paying you, you probably have to get a similar statement from the
company.  Good luck!

-- 

	Warren Montgomery
	ihnss!warren
	IH x2494