I've got a question about graduate student taxes. My fiancee is a full time graduate student working towards her PhD. She is paid a small stipend to cover living expenses while she's attending the unvirsity. The University pays for her tuition, and she has no student loans. The University sent her tax information on a form 1099-MISC, with her income in box 3 (used for Other Income, such as prize winnings). As far as we can tell, the University has never taken any money out of her paychecks for taxes. According to TurboTax, she owes money. We hired an accountant last year, who got confused by her taxes, and never actually filed them (something that I'm still working to have fixed). I was under the impression that a) she was below the poverty line and would be taxed, and b) wouldn't be taxed because she was a student. Does she actually owe money this year, or am I misunderstanding how the student tax laws work.