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A stipend is a form of salary, such as for an internship or apprenticeship.tipend has a specific, different, use in the Church of England, meaning the salary of a stipendiary minister, one who receives payment directly from the diocese (as opposed to other forms of disbursement such as free use of a house in return for clerical duties, known as house-for-duty).
How is stipend or fellowship income treated for tax purposes? Both are usually tax-exempt, as long as you use the money for tuition, fees, books, supplies and equipment required for enrollment and in the pursuit of a degree.