So it looks like 2012 is going to be a bumper crop of OPM’s and I wanted to start this thread for us to either ask questions of those who footsteps we are following or for those who have inspired us to “drop some knowledge” on us MS-1’s. Any tips or comments would be helpful to us I am sure.
This question is directed to anyone who has gotten scholarships. Do you have to declare them on your taxes? I seem to be inthe running for the HPSP and want to make sure if I get it, if I need to hold a little out from my stipend to give to th IRS for my schollarships.
Yes, you do claim them on your taxes. I doubt that you’ll have to pay anything on them, though. They don’t actually count as “income”. When I was claiming them, the amount of my scholarships was deducted from the amount I could claim for educational expenses. Since my expenses were still negative, I didn’t have to pay anything.
If you are receiving a stipend, you may have to pay taxes on it, but again, your total income is so low that combined with your education deductions that it would be unlikely that you would need to pay anything.
- BaileyPup Said:
This question is directed to anyone who has gotten scholarships. Do you have to declare them on your taxes? I seem to be inthe running for the HPSP and want to make sure if I get it, if I need to hold a little out from my stipend to give to th IRS for my schollarships.
BaileyPup,
You have to pay taxes on any financial aid you receive that is not a loan (e.g. grants, scholarships, veterans benefits, employer-provided tuition assistance), but only on the amount that exceeds cost-of-attendance. HPSP entitlements (i.e. scholarship and reimbursable expenses) are only designed to meet, but not exceed cost-of-attendance. Therefore, you will not need to pay income taxes on your HPSP benefits. You will, however, have to pay income taxes on the HPSP stipend you draw for 10½ months out of the year - this is considered work income and DFAS (Defense Finance & Accounting Service) will automatically withhold federal income taxes from your stipend checks and your signing bonus. You do not pay social security taxes or state income taxes on these amounts.
The monthly stipend is currently $2088/mo or $21,924/yr. Your FITW = $99.64/mo or $1046.22/yr.
Your one-time bonus = $20,000 and FITW = 25% ($5000).
In addition to these amounts, you will receive 1½ months of military pay every year at the O-1 (<2 yrs) rate. DFAS automatically withholds federal income & social security/medicare taxes on your base pay, but travel entitlements and allowances (e.g. BAS, partial BAH) are not taxed.
You won't be able to claim a tax credit or adjustments to income if the military is paying 100% tuition, fees, books & equipment. You will have a small income tax liability which will be largest in your 1st year if you worked for any part of 2012 prior to matriculation, and also because of the $20,000 bonus you will receive next fall in addition to your stipend (and military pay if you attend officer training school prior to med school starting next summer).
Hope this info helps you rather than confuses you.
- Emergency! Said:
...but again, your total income is so low that combined with your education deductions that it would be unlikely that you would need to pay anything.
That's not always the case.
Every college student receives an IRS form 1098-T from their educational institution annually. If the amount in box 5 exceeds the amount in box 2, you will incur an income tax liability on the excess. If, on the other hand, the amount in box 5 is less than the amount in box 2, you may be able to claim either an adjustment to income for the difference (by filing IRS from 8917 with your 1040) OR you may claim a tax credit (by filing IRS form 8863 with your 1040). In this case, you would generally use the method that results in either the lowest tax liability or, alternatively, the highest refund.
In BaileyPup's case, if he is an HPSP (military) student, the amount in box 5 of his 1098-T should equal the amount in box 2. In this case he would neither receive a tax break (adjustment to income or tax credit) for educational expenses nor an income tax liability for his scholarship.
Another question:
Will any of your undergrad materials be worth keeping? I can get to be kind of a pack rat with Notecards, Note Packets and Textbooks. My gut tells me destroy everything but maybe a few textbooks.
Get rid of it all!!
From a fellow pack rat who is stI’ll dragging around 20 year old texts.
Because I had not had biochem, I brought my copy of our organic text with us. WHen we had a “chemistry review” the first few days, I read quite a bit that week from it to refresh my memory on sugars, the essential amino acids, etc. That is the ONLY book I brought that I have cracked, and I could have done without that. Your med school library will have any conceivable reference you may need. Honestly, you are unlikely to look at any of it again. Make new notecards for the specific material you will need for your classes.
Exception - if you already had a good anatomy course, you might want to keep some of your study guides from that.
Kate
This is my first post, but I have been reading through all the threads about paying for med. school. I was wondering how most do this because now that I’ve gotten in I’m looking at the coa a little closer with concern it won’t be enough. I’m married with a wife in school, a mortgage, car note, and other bills so I’m a little worried. How did you guys do it? Is there any way to borrow over the coa? I look forward to being part of the community…Thanks in advance!
From what I understand, you can borrow more to cover a mortgage and child care, but not the care. Also above fedral student loans you can do private loans, but I believe higher rates ect.
Thanks Baileypup…This is what I thought, but when I called the financial aid office I was told that private loans could only be taken out with verification from the school and no more than the coa was allowed. I’m a little confused about this so maybe I’ll give them a call back this week to gain a little clarity on the subject. I was unaware that the coa could be increased for a mortgage. How would this be calculated in as the living expenses in the coa aren’t broken down into each specific cost? It’s just labeled living expenses.
Our COA is broken down so I can’t answer that one.
That’s alright… Are COA increases up to each school specifically or are they given a guide so they can rise it for certain things such as a mortgage or child care? Do they have to raise it if I request a raise for these items? I know it’s not favored due to higher interest rates, but how would alternative loans work?.. Would they be in deferment while I’m in school? I’ve read threads on here as well as SDN on this subject, but it’s a little confusing and seems like there’s conflicting info. I just want to know going into this what I need to do to cover mine and my wife’s bills… Thanks again for all the input…
You request the COA adjustment from the school is what I have heard. They decide if they will give it to you. As far as private loans I think you apply through a bank and I am not sire how they do it.
There’s a difference between private loans and alternative loans…right? I thought they might have specific government guidelines I could find online that they have to follow to increase the COA for specific reasons such as a mortgage or childcare, but not for CC debt.
- BaileyPup Said:
Another question:
Will any of your undergrad materials be worth keeping? I can get to be kind of a pack rat with Notecards, Note Packets and Textbooks. My gut tells me destroy everything but maybe a few textbooks.
Will any of your undergrad materials be worth keeping? I can get to be kind of a pack rat with Notecards, Note Packets and Textbooks. My gut tells me destroy everything but maybe a few textbooks.
I have been happily throwing - and sometimes shredding - all kinds of stuff from school for the past couple of days. Textbooks are in a box to attempt to sell at a used book store, and if they can't take 'em, to Goodwill they go. Maybe some hipster will turn them into art? It feels great.
However, I am going to order a few Step I books, maybe First Aid, to use as we cover material this year. I've read that it's a great way to make Step I review *be* review, rather than a panicked rush to re-learn.
I was catching up on diaries and saw a request on Licia’s - basically, DETDR asked what she would tell herself if she could go back in time to the start of medical school.
Her response was fantastically helpful ( Licia’s 10 Tips ), and I’m hoping some other OPM’ers will come here and post their top 3, 5 or 10 gems of advice to those of us starting the journey this year.
What would you want to say if you could go back to the week before your first year of medical school, and give yourself advice?
So, I just finished my 1st year of med school so here ya go:
- There’s going to be ups and downs. You are going to fail a test. You are going to an ace a test. Most will be somewhere in the middle. Just passing is worth celebrating.
- Try to find some balance in your life. Its not just your health and your relationships - its your sanity. Also, you are a better student when you are a happier person.
- Your classmates will amaze you, even if they are younger than you.
- Not all of your classmates will be younger than you - you may even make some really amazing friends. Be open to that possibility.
- If you have kids or a significant other - a few points on a test is really insignificant compared to time with the special people in your life. I’d rather spend time with my kids and pass a test, then to not spend time with my kids and ace the test.
- Med school isn’t so bad. The first couple of months are a little rough as you adjust - but then it becomes normal. Remember that in the first couple of months - it gets better.
If I think of any more, I’ll add. But mostly, its a lot of work but it’s an amazing experience. Good luck everyone!
somedaydrA - regarding your statement “just passing is worth celebrating” – I completely agree.
In that vein, here’s an (out of tune) musical interlude from Med school, the musical
http://www.youtube.com/watch?v=hW8KbFh1RSM
I had to laugh --particularly at the nod to how COLD the first year classroom is --is this universal at med school? Maybe to keep us awake?
Warning: a bit of rude language implied 
Kate
I’m going to need to bookmark that video and watch it the first time I barely pass an exam to make me feel better!