Hi,

I am a US resident for tax purposes. My wife is a student on F1 visa. We file our taxes jointly as residents.

For the year 2008:

My wife received 18000 dollars as stipend amount our of which around 9000 dollars was used to pay her tuition. She got a 1042-S form for the stipend amount she recd - wherein federal taxes are deducted but there is no state tax deduction.

My questions:

1) I understand that 9000 dollars of the 1042-S amount she got is taxable. Do I add this to the my total wages and include in the total wages (line 7) for federal tax form . Is this correct ?

2) This is regarding the state taxes that we would file ( State of Maryland). For total wages in this state tax form - do we write the total amount from line 7 of 1040 federal.
In other words, do we have to include the 9000 dollars that is obtained from the 1042-S form ?
The confusion is a result of the fact that there was no state tax deducted for the 1042-S.
Does it mean that the amount on the 1042-S is not taxable from the individual state ?

1) Yes.

2) Yes; the fact that no state taxes were withheld does NOT affect whether the stipend is subject to Maryland taxes, which it IS.